Auto Trader Group plc (LON:AUTO) Just Released Its Full-Year Results And Analysts Are Updating Their Estimates

It's been a mediocre week for Auto Trader Group plc (LON:AUTO) shareholders, with the stock dropping 13% to UK£7.94 in the week since its latest annual results. Auto Trader Group reported in line with analyst predictions, delivering revenues of UK£601m and statutory earnings per share of UK£0.32, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the 14 analysts covering Auto Trader Group are now predicting revenues of UK£639.1m in 2026. If met, this would reflect a credible 6.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.0% to UK£0.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£651.1m and earnings per share (EPS) of UK£0.35 in 2026. 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.

View our latest analysis for Auto Trader Group

It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£8.48. 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 Auto Trader Group, with the most bullish analyst valuing it at UK£10.40 and the most bearish at UK£6.80 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Auto Trader Group's revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2026 being well below the historical 16% 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 8.2% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Auto Trader Group.

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 that it's tracking in line with expectations. Although our data does suggest that Auto Trader Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at UK£8.48, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Auto Trader Group going out to 2028, and you can see them free on our platform here.

You can also see our analysis of Auto Trader Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.