Analysts Are Updating Their Johnson Service Group PLC (LON:JSG) Estimates After Its Full-Year Results

Johnson Service Group PLC (LON:JSG) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of UK£465m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.0% to hit UK£0.064 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Johnson Service Group

Taking into account the latest results, the current consensus from Johnson Service Group's seven analysts is for revenues of UK£511.7m in 2024. This would reflect a solid 10.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to jump 26% to UK£0.082. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£508.6m and earnings per share (EPS) of UK£0.083 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£1.61. 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 Johnson Service Group analyst has a price target of UK£1.80 per share, while the most pessimistic values it at UK£1.40. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 Johnson Service Group's growth to accelerate, with the forecast 10.0% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Johnson Service Group is expected to grow much 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. 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. At Simply Wall St, we have a full range of analyst estimates for Johnson Service Group going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Johnson Service Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.