Carr's Group plc (LON:CARR) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

Investors in Carr's Group plc (LON:CARR) had a good week, as its shares rose 3.1% to close at UK£1.26 following the release of its full-year results. Results overall were respectable, with statutory earnings of UK£0.10 per share roughly in line with what the analysts had forecast. Revenues of UK£396m came in 3.6% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Carr's Group

Following last week's earnings report, Carr's Group's twin analysts are forecasting 2021 revenues to be UK£394.0m, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 11% to UK£0.11. In the lead-up to this report, the analysts had been modelling revenues of UK£392.4m and earnings per share (EPS) of UK£0.12 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.

There were no changes to revenue or earnings estimates or the price target of UK£1.63, suggesting that the company has met expectations in its recent result.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Carr's Group's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.4%, a significant reduction from annual growth of 6.5% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Carr's Group is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Carr's Group's revenues are expected to perform worse than the wider industry. The consensus price target held steady at UK£1.63, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Carr's Group going out as far as 2022, and you can see them free on our platform here.

You can also see whether Carr's Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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