Lords Group Trading plc Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

Shareholders will be ecstatic, with their stake up 20% over the past week following Lords Group Trading plc's (LON:LORD) latest annual results. Things were not great overall, with a surprise (statutory) loss of UK£0.012 per share on revenues of UK£437m, even though the analysts had been expecting a profit. 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 Lords Group Trading after the latest results.

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Taking into account the latest results, the consensus forecast from Lords Group Trading's three analysts is for revenues of UK£458.5m in 2025. This reflects a satisfactory 5.0% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Lords Group Trading forecast to report a statutory profit of UK£0.019 per share. In the lead-up to this report, the analysts had been modelling revenues of UK£459.7m and earnings per share (EPS) of UK£0.02 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Lords Group Trading

The average price target fell 15% to UK£0.67, with reduced earnings forecasts clearly tied to a lower valuation estimate. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Lords Group Trading, with the most bullish analyst valuing it at UK£0.80 and the most bearish at UK£0.50 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lords Group Trading shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Lords Group Trading's revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2025 being well below the historical 14% p.a. growth over the last five years. Compare this to the 23 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.8% per year. Factoring in the forecast slowdown in growth, it looks like Lords Group Trading is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Lords Group Trading analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Lords Group Trading is showing 3 warning signs in our investment analysis , and 1 of those shouldn't be ignored...

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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.