Earnings Update: Aston Martin Lagonda Global Holdings plc (LON:AML) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

Investors in Aston Martin Lagonda Global Holdings plc (LON:AML) had a good week, as its shares rose 4.9% to close at UK£0.71 following the release of its first-quarter results. It was a pretty good result, with revenues of UK£268m, and Aston Martin Lagonda Global Holdings came in a solid 13% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the most recent consensus for Aston Martin Lagonda Global Holdings from eight analysts is for revenues of UK£1.64b in 2025. If met, it would imply a satisfactory 5.7% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 35% to UK£0.18. Before this latest report, the consensus had been expecting revenues of UK£1.63b and UK£0.18 per share in losses.

Check out our latest analysis for Aston Martin Lagonda Global Holdings

As a result there was no major change to the consensus price target of UK£1.05, implying that the business is trading roughly in line with expectations despite ongoing losses. 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. There are some variant perceptions on Aston Martin Lagonda Global Holdings, with the most bullish analyst valuing it at UK£2.00 and the most bearish at UK£0.70 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Aston Martin Lagonda Global Holdings' revenue growth is expected to slow, with the forecast 7.7% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% annually. Even after the forecast slowdown in growth, it seems obvious that Aston Martin Lagonda Global Holdings is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for 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 UK£1.05, 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 Aston Martin Lagonda Global Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Aston Martin Lagonda Global Holdings going out to 2027, and you can see them free 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.