Jupiter Fund Management Plc Just Beat EPS By 24%: Here's What Analysts Think Will Happen Next

Jupiter Fund Management Plc (LON:JUP) investors will be delighted, with the company turning in some strong numbers with its latest results. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 15% higher than the analysts had forecast, at UK£458m, while EPS were UK£0.21 beating analyst models by 24%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Jupiter Fund Management

Taking into account the latest results, Jupiter Fund Management's 13 analysts currently expect revenues in 2021 to be UK£458.7m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be UK£0.22, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of UK£446.5m and earnings per share (EPS) of UK£0.21 in 2021. 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 analysts have not made any major changes to their price target of UK£3.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Jupiter Fund Management at UK£3.48 per share, while the most bearish prices it at UK£2.20. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jupiter Fund Management's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Jupiter Fund Management's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 0.2% growth on an annualised basis. This is compared to a historical growth rate of 3.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.5% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Jupiter Fund Management.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Jupiter Fund Management's earnings potential next year. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower than the wider industry. The consensus price target held steady at UK£3.00, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Jupiter Fund Management going out to 2023, and you can see them free on our platform here.

Before you take the next step you should know about the 3 warning signs for Jupiter Fund Management that we have uncovered.

If you’re looking to trade Jupiter Fund Management, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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