Team Internet Group plc Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Team Internet Group plc (LON:TIG) recently reported its full-year numbers. Revenues were US$837m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at US$0.086, an impressive 92% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Team Internet Group

Taking into account the latest results, the most recent consensus for Team Internet Group from five analysts is for revenues of US$886.0m in 2024. If met, it would imply a modest 5.9% increase on its revenue over the past 12 months. Statutory earnings per share are expected to plunge 20% to US$0.077 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$888.9m and earnings per share (EPS) of US$0.073 in 2024. So the consensus seems to have become somewhat more optimistic on Team Internet Group's earnings potential following these results.

The consensus price target was unchanged at UK£2.48, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Team Internet Group, with the most bullish analyst valuing it at UK£3.50 and the most bearish at UK£1.85 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Team Internet Group's past performance and to peers in the same industry. We would highlight that Team Internet Group's revenue growth is expected to slow, with the forecast 5.9% annualised growth rate until the end of 2024 being well below the historical 45% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.2% annually. So it's pretty clear that, while Team Internet 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 Team Internet 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. 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 forecasts for Team Internet Group going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Team Internet Group (1 makes us a bit uncomfortable) you should be aware 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.