London Stock Exchange Group plc (LON:LSEG) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Investors in London Stock Exchange Group plc (LON:LSEG) had a good week, as its shares rose 2.9% to close at UK£97.40 following the release of its half-yearly results. London Stock Exchange Group reported in line with analyst predictions, delivering revenues of UK£4.4b and statutory earnings per share of UK£1.38, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for London Stock Exchange Group

Following last week's earnings report, London Stock Exchange Group's 16 analysts are forecasting 2024 revenues to be UK£8.74b, approximately in line with the last 12 months. Per-share earnings are expected to ascend 11% to UK£1.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£8.72b and earnings per share (EPS) of UK£1.63 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

The consensus price target held steady at UK£108, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values London Stock Exchange Group at UK£135 per share, while the most bearish prices it at UK£88.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the London Stock Exchange Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that London Stock Exchange Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 31% over the past five years. Compare this to the 167 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.5% per year. So it's pretty clear that, while London Stock Exchange Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 London Stock Exchange Group analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for London Stock Exchange Group that you should be aware of.

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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.

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