The Netwealth Group Limited (ASX:NWL) Yearly Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that Netwealth Group Limited (ASX:NWL) filed its full-year result this time last week. The early response was not positive, with shares down 6.1% to AU$20.68 in the past week. Revenues of AU$255m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$0.34, missing estimates by 2.7%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Netwealth Group

Taking into account the latest results, the consensus forecast from Netwealth Group's 16 analysts is for revenues of AU$304.3m in 2025. This reflects a solid 19% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 26% to AU$0.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$308.0m and earnings per share (EPS) of AU$0.44 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at AU$19.82, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Netwealth Group at AU$24.50 per share, while the most bearish prices it at AU$10.80. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Netwealth Group'shistorical trends, as the 19% annualised revenue growth to the end of 2025 is roughly in line with the 18% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.2% per year. So although Netwealth Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Netwealth Group going out to 2027, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.