Aston Martin Lagonda Global Holdings plc (LON:AML) First-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a mediocre week for Aston Martin Lagonda Global Holdings plc (LON:AML) shareholders, with the stock dropping 12% to UK£1.33 in the week since its latest quarterly results. Revenues were UK£268m, with Aston Martin Lagonda Global Holdings reporting some 7.3% below analyst expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Aston Martin Lagonda Global Holdings

Following the latest results, Aston Martin Lagonda Global Holdings' nine analysts are now forecasting revenues of UK£1.78b in 2024. This would be a notable 11% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 30% to UK£0.25. Before this latest report, the consensus had been expecting revenues of UK£1.82b and UK£0.16 per share in losses. While this year's revenue estimates dropped there was also a sizeable expansion in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

There was no major change to the consensus price target of UK£2.50, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. 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 Aston Martin Lagonda Global Holdings, with the most bullish analyst valuing it at UK£3.85 and the most bearish at UK£1.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aston Martin Lagonda Global Holdings' past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Aston Martin Lagonda Global Holdings'historical trends, as the 14% annualised revenue growth to the end of 2024 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.3% annually. So although Aston Martin Lagonda Global Holdings 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 increased their loss per share estimates for next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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. At Simply Wall St, we have a full range of analyst estimates for Aston Martin Lagonda Global Holdings going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Aston Martin Lagonda Global Holdings that you should be aware 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.