Stock Analysis

TFF Group (EPA:TFF) Just Released Its Annual Earnings: Here's What Analysts Think

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ENXTPA:TFF

The yearly results for TFF Group (EPA:TFF) were released last week, making it a good time to revisit its performance. It was an okay result overall, with revenues coming in at €487m, roughly what the analysts had been expecting. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for TFF Group

ENXTPA:TFF Earnings and Revenue Growth July 11th 2024

Taking into account the latest results, the current consensus from TFF Group's four analysts is for revenues of €506.7m in 2025. This would reflect a reasonable 4.1% increase on its revenue over the past 12 months. Before this earnings report, the analysts had been forecasting revenues of €519.2m and earnings per share (EPS) of €3.02 in 2025. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €51.86. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on TFF Group, with the most bullish analyst valuing it at €55.00 and the most bearish at €48.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's pretty clear that there is an expectation that TFF Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.0% annually. So it's pretty clear that, while TFF Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at €51.86, with the latest estimates not enough to have an impact on their price targets.

We have estimates for TFF Group from its four analysts out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - TFF Group has 1 warning sign we think you should be aware of.

Valuation is complex, but we're here to simplify it.

Discover if TFF Group might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.