Frenkel Topping Group Plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Last week saw the newest yearly earnings release from Frenkel Topping Group Plc (LON:FEN), an important milestone in the company's journey to build a stronger business. The result was positive overall - although revenues of UK£25m were in line with what the analyst predicted, Frenkel Topping Group surprised by delivering a statutory profit of UK£0.014 per share, modestly greater than expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Frenkel Topping Group

Taking into account the latest results, the consensus forecast from Frenkel Topping Group's sole analyst is for revenues of UK£31.9m in 2023, which would reflect a substantial 28% improvement in sales compared to the last 12 months. Per-share earnings are expected to jump 166% to UK£0.036. Yet prior to the latest earnings, the analyst had been anticipated revenues of UK£31.2m and earnings per share (EPS) of UK£0.039 in 2023. So it's pretty clear consensus is mixed on Frenkel Topping Group after the latest results; whilethe analyst lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

Curiously, the consensus price target rose 5.2% to UK£1.02. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.

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 can infer from the latest estimates that forecasts expect a continuation of Frenkel Topping Group'shistorical trends, as the 28% annualised revenue growth to the end of 2023 is roughly in line with the 28% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So it's pretty clear that Frenkel Topping Group is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 Frenkel Topping Group going out as far as 2025, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with Frenkel Topping Group , and understanding them should be part of your investment process.

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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.