Intertek Group plc (LON:ITRK) Interim Results: Here's What Analysts Are Forecasting For This Year

Intertek Group plc (LON:ITRK) shareholders are probably feeling a little disappointed, since its shares fell 6.3% to UK£46.10 in the week after its latest interim results. Results were roughly in line with estimates, with revenues of UK£1.7b and statutory earnings per share of UK£2.13. 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.

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Following last week's earnings report, Intertek Group's 14 analysts are forecasting 2025 revenues to be UK£3.44b, approximately in line with the last 12 months. Statutory per share are forecast to be UK£2.28, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£3.46b and earnings per share (EPS) of UK£2.32 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Intertek Group

There were no changes to revenue or earnings estimates or the price target of UK£57.17, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Intertek Group analyst has a price target of UK£67.50 per share, while the most pessimistic values it at UK£45.00. 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.

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. It's pretty clear that there is an expectation that Intertek Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 5.3% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Intertek Group.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

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 Intertek Group analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Intertek Group .

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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.