Here's What Analysts Are Forecasting For Advanced Medical Solutions Group plc (LON:AMS) After Its Interim Results

It's been a good week for Advanced Medical Solutions Group plc (LON:AMS) shareholders, because the company has just released its latest half-yearly results, and the shares gained 3.2% to UK£2.13. It was a credible result overall, with revenues of UK£111m and statutory earnings per share of UK£0.033 both in line with analyst estimates, showing that Advanced Medical Solutions Group is executing in line with expectations. 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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After the latest results, the seven analysts covering Advanced Medical Solutions Group are now predicting revenues of UK£228.4m in 2025. If met, this would reflect a modest 3.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 61% to UK£0.068. Before this earnings report, the analysts had been forecasting revenues of UK£229.2m and earnings per share (EPS) of UK£0.058 in 2025. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Advanced Medical Solutions Group

There's been no major changes to the consensus price target of UK£2.66, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Advanced Medical Solutions Group at UK£3.25 per share, while the most bearish prices it at UK£2.15. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Advanced Medical Solutions Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 7.5% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.7% annually. So it's pretty clear that, while Advanced Medical Solutions Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Advanced Medical Solutions Group following these results. 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£2.66, 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 estimates - from multiple Advanced Medical Solutions Group analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Advanced Medical Solutions Group that you need to be mindful 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.