Severfield plc (LON:SFR) Just Released Its Full-Year Earnings: Here's What Analysts Think

Investors in Severfield plc (LON:SFR) had a good week, as its shares rose 10.0% to close at UK£0.70 following the release of its full-year results. Severfield reported UK£492m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of UK£0.069 beat expectations, being 2.4% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Severfield

Taking into account the latest results, the most recent consensus for Severfield from six analysts is for revenues of UK£569.6m in 2024. If met, it would imply a decent 16% increase on its revenue over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of UK£557.2m and earnings per share (EPS) of UK£0.073 in 2024. The thing that stands out most is that, while there's been a modest lift to revenue estimates, the consensus no longer provides an EPS estimate. This impliesthat revenue is more important following the latest results.

There's been no real change to the consensus price target of UK£1.07, with Severfield seemingly executing in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Severfield at UK£1.30 per share, while the most bearish prices it at UK£0.87. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. The analysts are definitely expecting Severfield's growth to accelerate, with the forecast 16% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Severfield is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts upgraded their revenue estimates for next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at UK£1.07, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Severfield from its six analysts out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Severfield (of which 1 shouldn't be ignored!) 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.