Results: Henry Boot PLC Beat Earnings Expectations And Analysts Now Have New Forecasts

A week ago, Henry Boot PLC (LON:BOOT) came out with a strong set of full-year numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of UK£359m arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were UK£0.19, 5.5% ahead of estimates. 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. 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 Henry Boot

Taking into account the latest results, Henry Boot's three analysts currently expect revenues in 2024 to be UK£356.8m, approximately in line with the last 12 months. Statutory earnings per share are forecast to tumble 25% to UK£0.15 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£359.1m and earnings per share (EPS) of UK£0.15 in 2024. 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.

The analysts reconfirmed their price target of UK£3.38, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Henry Boot analyst has a price target of UK£4.40 per share, while the most pessimistic values it at UK£2.65. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We would also point out that the forecast 0.7% annualised revenue decline to the end of 2024 is better than the historical trend, which saw revenues shrink 2.7% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.3% annually. So while a broad number of companies are forecast to grow, unfortunately Henry Boot is expected to see its revenue affected worse than other companies in the 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Henry Boot's revenue is expected to 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.

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. We have estimates - from multiple Henry Boot analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that Henry Boot is showing 1 warning sign in our investment analysis , you should know about...

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.