Last week, you might have seen that IntegraFin Holdings plc (LON:IHP) released its annual result to the market. The early response was not positive, with shares down 2.4% to UK£5.37 in the past week. IntegraFin Holdings reported UK£107m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of UK£0.14 beat expectations, being 4.0% higher than what the analysts expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for IntegraFin Holdings from six analysts is for revenues of UK£122.2m in 2021 which, if met, would be a notable 14% increase on its sales over the past 12 months. Per-share earnings are expected to rise 5.5% to UK£0.14. Before this earnings report, the analysts had been forecasting revenues of UK£120.0m and earnings per share (EPS) of UK£0.15 in 2021. 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£5.38. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic IntegraFin Holdings analyst has a price target of UK£6.50 per share, while the most pessimistic values it at UK£3.96. 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. It's clear from the latest estimates that IntegraFin Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 14% revenue growth noticeably faster than its historical growth of 10%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% next year. Factoring in the forecast acceleration in revenue, it's pretty clear that IntegraFin Holdings is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at UK£5.38, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on IntegraFin Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for IntegraFin Holdings going out to 2025, and you can see them free on our platform here..
Even so, be aware that IntegraFin Holdings is showing 1 warning sign in our investment analysis , you should know about...
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