Earnings Update: Aston Martin Lagonda Global Holdings plc (LON:AML) Just Reported And Analysts Are Trimming Their Forecasts

Shareholders in Aston Martin Lagonda Global Holdings plc (LON:AML) had a terrible week, as shares crashed 25% to UK£0.85 in the week since its latest annual results. Revenues were in line with expectations, at UK£1.6b, while statutory losses ballooned to UK£0.39 per share. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Aston Martin Lagonda Global Holdings after the latest results.

Check out our latest analysis for Aston Martin Lagonda Global Holdings

Taking into account the latest results, the current consensus from Aston Martin Lagonda Global Holdings' seven analysts is for revenues of UK£1.65b in 2025. This would reflect a satisfactory 4.3% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 63% to UK£0.13. Yet prior to the latest earnings, the analysts had been forecasting revenues of UK£1.84b and losses of UK£0.11 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue outlook while also expecting losses per share to increase.

There was no major change to the consensus price target of UK£1.40, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Aston Martin Lagonda Global Holdings analyst has a price target of UK£2.00 per share, while the most pessimistic values it at UK£1.10. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Aston Martin Lagonda Global Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.4% annually. So it's pretty clear that, while Aston Martin Lagonda Global Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. The consensus price target held steady at UK£1.40, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. 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..

Even so, be aware that Aston Martin Lagonda Global Holdings is showing 1 warning sign in our investment analysis , you should know about...

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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.