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

There's been a notable change in appetite for Aston Martin Lagonda Global Holdings plc (LON:AML) shares in the week since its yearly report, with the stock down 11% to UK£0.69. It was a pretty bad result overall; while revenues were in line with expectations at UK£1.6b, statutory losses exploded 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Aston Martin Lagonda Global Holdings' eight analysts is for revenues of UK£1.73b in 2025. This reflects a notable 9.2% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 45% to UK£0.19. Yet prior to the latest earnings, the analysts had been forecasting revenues of UK£1.76b and losses of UK£0.19 per share in 2025.

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£1.32, implying that the business is trading roughly in line with expectations despite ongoing losses. 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£2.00 per share, while the most bearish prices it at UK£0.80. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Aston Martin Lagonda Global Holdings' revenue growth is expected to slow, with the forecast 9.2% annualised growth rate until the end of 2025 being well below the historical 18% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.8% per year. 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 obvious conclusion is that the analysts made no changes to their forecasts for a loss 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£1.32, 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. We have forecasts 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.