Results: Colefax Group PLC Exceeded Expectations And The Consensus Has Updated Its Estimates

Colefax Group PLC (LON:CFX) just released its latest yearly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.0% to hit UK£110m. Colefax Group also reported a statutory profit of UK£1.08, which was an impressive 37% above what the analyst had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

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Following last week's earnings report, Colefax Group's lone analyst are forecasting 2026 revenues to be UK£110.5m, approximately in line with the last 12 months. Statutory earnings per share are expected to plummet 27% to UK£0.77 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of UK£106.1m and earnings per share (EPS) of UK£0.77 in 2026. So it looks like there's been no major change in sentiment following the latest results, although the analyst has made a slight bump in to revenue forecasts.

See our latest analysis for Colefax Group

The consensus price target increased 24% to UK£8.70, with an improved revenue forecast carrying the promise of a more valuable business, in time.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Colefax Group's revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2026 being well below the historical 8.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.7% 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 Colefax Group.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analyst reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Colefax Group going out as far as 2028, and you can see them free on our platform here.

Even so, be aware that Colefax Group is showing 2 warning signs in our investment analysis , and 1 of those can't be ignored...

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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.