Analysts Have Made A Financial Statement On Aussie Broadband Limited's (ASX:ABB) Half-Yearly Report

Shareholders of Aussie Broadband Limited (ASX:ABB) will be pleased this week, given that the stock price is up 16% to AU$4.53 following its latest half-yearly results. Aussie Broadband reported in line with analyst predictions, delivering revenues of AU$446m and statutory earnings per share of AU$0.091, suggesting the business is executing well and in line with its plan. The analysts 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Aussie Broadband

Taking into account the latest results, the consensus forecast from Aussie Broadband's four analysts is for revenues of AU$983.3m in 2024. This reflects a solid 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 128% to AU$0.19. In the lead-up to this report, the analysts had been modelling revenues of AU$937.9m and earnings per share (EPS) of AU$0.13 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a very substantial lift in earnings per share in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of AU$3.95, suggesting that the forecast performance does not have a long term impact on the company's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Aussie Broadband analyst has a price target of AU$4.50 per share, while the most pessimistic values it at AU$2.40. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We can infer from the latest estimates that forecasts expect a continuation of Aussie Broadband'shistorical trends, as the 32% annualised revenue growth to the end of 2024 is roughly in line with the 38% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.4% per year. So it's pretty clear that Aussie Broadband is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Aussie Broadband following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at AU$3.95, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Aussie Broadband. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Aussie Broadband analysts - going out to 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 1 warning sign for Aussie Broadband 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.