The Smiths Group plc (LON:SMIN) Interim Results Are Out And Analysts Have Published New Forecasts

Smiths Group plc (LON:SMIN) last week reported its latest interim results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Smiths Group reported in line with analyst predictions, delivering revenues of UK£1.5b and statutory earnings per share of UK£0.65, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Smiths Group

Taking into account the latest results, the current consensus from Smiths Group's twelve analysts is for revenues of UK£3.14b in 2024. This would reflect a satisfactory 3.1% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 38% to UK£0.93. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£3.16b and earnings per share (EPS) of UK£0.93 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of UK£19.86, suggesting that the company has met expectations in its recent result. 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 Smiths Group analyst has a price target of UK£22.50 per share, while the most pessimistic values it at UK£17.50. This is a very narrow spread of estimates, implying either that Smiths Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.4% growth on an annualised basis. That is in line with its 5.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.1% per year. So it's pretty clear that Smiths Group is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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£19.86, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Smiths Group going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Smiths Group that you should be aware of.

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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.