Genus plc Just Missed EPS By 72%: Here's What Analysts Think Will Happen Next

Genus plc (LON:GNS) shareholders are probably feeling a little disappointed, since its shares fell 4.1% to UK£17.10 in the week after its latest full-year results. It looks like a pretty bad result, all things considered. Although revenues of UK£669m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 72% to hit UK£0.12 per share. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Genus

Taking into account the latest results, Genus' five analysts currently expect revenues in 2025 to be UK£680.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 231% to UK£0.40. Before this earnings report, the analysts had been forecasting revenues of UK£683.0m and earnings per share (EPS) of UK£0.56 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.

The consensus price target held steady at UK£26.58, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Genus analyst has a price target of UK£31.00 per share, while the most pessimistic values it at UK£21.50. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 Genus' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 1.7% growth on an annualised basis. This is compared to a historical growth rate of 6.6% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 19% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Genus.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Genus going out to 2027, and you can see them free on our platform here..

Even so, be aware that Genus is showing 2 warning signs in our investment analysis , you should know about...

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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.