UK£5.15: That's What Analysts Think H&T Group plc (LON:HAT) Is Worth After Its Latest Results

The investors in H&T Group plc's (LON:HAT) will be rubbing their hands together with glee today, after the share price leapt 20% to UK£4.03 in the week following its full-year results. It was a workmanlike result, with revenues of UK£221m coming in 3.5% ahead of expectations, and statutory earnings per share of UK£0.48, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for H&T Group

Following the latest results, H&T Group's twin analysts are now forecasting revenues of UK£253.0m in 2024. This would be a solid 15% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 17% to UK£0.57. Before this earnings report, the analysts had been forecasting revenues of UK£244.7m and earnings per share (EPS) of UK£0.56 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades, the consensus price target fell 8.8% to UK£5.15, perhaps signalling that the uplift in performance is not expected to last.

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. The analysts are definitely expecting H&T Group's growth to accelerate, with the forecast 15% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.2% per annum 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 18% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, H&T Group is expected to grow slower than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around H&T Group's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for H&T Group going out as far as 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for H&T Group you should know about.

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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.