Pollen Street Group Limited Just Recorded A 13% Revenue Beat: Here's What Analysts Think

Pollen Street Group Limited (LON:POLN) just released its latest full-year results and things are looking bullish. It was a positive result, with revenues and statutory earnings per share (EPS) both performing well. Revenues were 13% higher than the analysts had forecast, at UK£118m, while EPS of UK£0.79 beat analyst models by 6.3%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the three analysts covering Pollen Street Group provided consensus estimates of UK£110.7m revenue in 2025, which would reflect a small 6.5% decline over the past 12 months. Statutory earnings per share are forecast to decrease 7.2% to UK£0.76 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£112.9m and earnings per share (EPS) of UK£0.76 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Pollen Street Group

There were no changes to revenue or earnings estimates or the price target of UK£9.74, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Pollen Street Group analyst has a price target of UK£10.87 per share, while the most pessimistic values it at UK£9.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.5% by the end of 2025. This indicates a significant reduction from annual growth of 13% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.5% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pollen Street Group is expected to lag the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at UK£9.74, 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 estimates - from multiple Pollen Street Group analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Pollen Street Group is showing 1 warning sign in our investment analysis , you should know about...

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