Michelmersh Brick Holdings plc (LON:MBH) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Michelmersh Brick Holdings plc (LON:MBH) released its yearly result to the market. The early response was not positive, with shares down 3.1% to UK£0.97 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at UK£70m, statutory earnings beat expectations 4.9%, with Michelmersh Brick Holdings reporting profits of UK£0.064 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Taking into account the latest results, the consensus forecast from Michelmersh Brick Holdings' four analysts is for revenues of UK£75.7m in 2025. This reflects a decent 8.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 29% to UK£0.085. Before this earnings report, the analysts had been forecasting revenues of UK£77.4m and earnings per share (EPS) of UK£0.082 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

See our latest analysis for Michelmersh Brick Holdings

The consensus has made no major changes to the price target of UK£1.50, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Michelmersh Brick Holdings analyst has a price target of UK£1.70 per share, while the most pessimistic values it at UK£1.30. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We can infer from the latest estimates that forecasts expect a continuation of Michelmersh Brick Holdings'historical trends, as the 8.0% annualised revenue growth to the end of 2025 is roughly in line with the 8.7% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 6.1% annually. So it's pretty clear that Michelmersh Brick Holdings is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Michelmersh Brick Holdings' earnings potential next year. They also downgraded Michelmersh Brick Holdings' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Even so, earnings are more important to the intrinsic value of the business. 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.

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 Michelmersh Brick Holdings analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Michelmersh Brick 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.