Keystone Law Group plc (LON:KEYS) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

It's been a good week for Keystone Law Group plc (LON:KEYS) shareholders, because the company has just released its latest full-year results, and the shares gained 4.9% to UK£6.45. It was a workmanlike result, with revenues of UK£89m coming in 3.7% ahead of expectations, and statutory earnings per share of UK£0.24, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Keystone Law Group

Following the latest results, Keystone Law Group's six analysts are now forecasting revenues of UK£93.8m in 2025. This would be a reasonable 5.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.8% to UK£0.25. Before this earnings report, the analysts had been forecasting revenues of UK£91.1m and earnings per share (EPS) of UK£0.25 in 2025. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of UK£7.57, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. The most optimistic Keystone Law Group analyst has a price target of UK£10.20 per share, while the most pessimistic values it at UK£4.70. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Keystone Law Group's revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2025 being well below the historical 15% 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) 6.0% annually. Factoring in the forecast slowdown in growth, it looks like Keystone Law Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Keystone Law Group following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Keystone Law Group will grow in line with the overall 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Keystone Law Group going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Keystone Law Group that you need to take into consideration.

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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.