Sanderson Design Group plc Just Missed Earnings; Here's What Analysts Are Forecasting Now

As you might know, Sanderson Design Group plc (LON:SDG) recently reported its yearly numbers. Revenues came in at UK£100m, in line with estimates, while Sanderson Design Group reported a statutory loss of UK£0.21 per share, well short of prior analyst forecasts for a profit. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sanderson Design Group after the latest results.

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Taking into account the latest results, Sanderson Design Group's three analysts currently expect revenues in 2026 to be UK£102.4m, approximately in line with the last 12 months. Sanderson Design Group is also expected to turn profitable, with statutory earnings of UK£0.038 per share. In the lead-up to this report, the analysts had been modelling revenues of UK£103.3m and earnings per share (EPS) of UK£0.032 in 2026. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

View our latest analysis for Sanderson Design Group

The consensus price target fell 21% to UK£0.94, suggesting the increase in earnings forecasts was not enough to offset other the analysts concerns. 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 Sanderson Design Group analyst has a price target of UK£1.00 per share, while the most pessimistic values it at UK£0.89. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sanderson Design Group is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sanderson Design Group's rate of growth is expected to accelerate meaningfully, with the forecast 2.0% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.7% p.a. 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 7.0% per year. So it's clear that despite the acceleration in growth, Sanderson Design Group is expected to grow meaningfully slower than the industry average.

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 Sanderson Design Group following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sanderson Design Group's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Sanderson Design Group's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Sanderson Design Group going out to 2027, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 3 warning signs for Sanderson Design Group you should be aware of, and 2 of them make us uncomfortable.

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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.