Supply Network Limited (ASX:SNL) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week saw the newest annual earnings release from Supply Network Limited (ASX:SNL), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of AU$252m were in line with what the analyst predicted, Supply Network surprised by delivering a statutory profit of AU$0.66 per share, modestly greater than expected. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Supply Network after the latest results.

Check out our latest analysis for Supply Network

Taking into account the latest results, the most recent consensus for Supply Network from single analyst is for revenues of AU$290.1m in 2024. If met, it would imply a meaningful 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to step up 12% to AU$0.74. In the lead-up to this report, the analyst had been modelling revenues of AU$293.5m and earnings per share (EPS) of AU$0.70 in 2024. So the consensus seems to have become somewhat more optimistic on Supply Network's earnings potential following these results.

The consensus price target was unchanged at AU$15.80, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analyst, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 16% 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 7.1% per year. So it's pretty clear that Supply Network is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Supply Network's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at AU$15.80, with the latest estimates not enough to have an impact on their price target.

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 analyst estimates for Supply Network going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Supply Network that you need to be mindful of.

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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.