Analysts Are Updating Their Conduit Holdings Limited (LON:CRE) Estimates After Its Half-Yearly Results

Conduit Holdings Limited (LON:CRE) defied analyst predictions to release its interim results, which were ahead of market expectations. It looks like a positive result overall, with revenues of US$210m beating forecasts by 8.2%. Statutory losses of US$0.37 per share were 8.2% smaller than the analysts expected, likely helped along by the higher revenues. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Conduit Holdings

Taking into account the latest results, the most recent consensus for Conduit Holdings from six analysts is for revenues of US$457.5m in 2022 which, if met, would be a huge 51% increase on its sales over the past 12 months. Per-share statutory losses are expected to explode, reaching US$0.14 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$462.3m and earnings per share (EPS) of US$0.075 in 2022. So despite reconfirming their revenue estimates, the analysts are now forecasting a loss instead of a profit, which looks like a definite drop in sentiment following the latest results.

The consensus price target held steady at UK£4.99, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Conduit Holdings at UK£5.60 per share, while the most bearish prices it at UK£4.07. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Conduit Holdings' revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 129% growth on an annualised basis. This is compared to a historical growth rate of 219% over the past year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. So it's pretty clear that, while Conduit Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest low-light for us was that the forecasts for Conduit Holdings dropped from profits to a loss next year. 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£4.99, 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 Conduit Holdings analysts - going out to 2024, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Conduit Holdings .

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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.