The Aston Martin Lagonda Global Holdings plc (LON:AML) Interim Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Aston Martin Lagonda Global Holdings plc (LON:AML) shareholders, because the company has just released its latest interim results, and the shares gained 4.5% to UK£1.60. The results were positive, with revenue coming in at UK£603m, beating analyst expectations by 8.5%. 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. 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

Following the latest results, Aston Martin Lagonda Global Holdings' nine analysts are now forecasting revenues of UK£1.79b in 2024. This would be a solid 15% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 44% to UK£0.20. Before this latest report, the consensus had been expecting revenues of UK£1.77b and UK£0.20 per share in losses. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

The average price target held steady at UK£2.47, seeming to indicate that business is performing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Aston Martin Lagonda Global Holdings at UK£3.89 per share, while the most bearish prices it at UK£1.55. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting Aston Martin Lagonda Global Holdings' growth to accelerate, with the forecast 32% annualised growth to the end of 2024 ranking favourably alongside historical growth of 15% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 2.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Aston Martin Lagonda Global Holdings 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. Happily, there were no major changes to revenue forecasts, with the business still expected to 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. We have forecasts for Aston Martin Lagonda Global Holdings going out to 2026, and you can see them free on our platform here.

Even so, be aware that Aston Martin Lagonda Global Holdings is showing 3 warning signs 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.

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