Results: Foxtons Group plc Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, Foxtons Group plc (LON:FOXT) recently reported its annual numbers. Revenues were UK£164m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at UK£0.045, an impressive 23% ahead of estimates. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Foxtons Group

Taking into account the latest results, the most recent consensus for Foxtons Group from six analysts is for revenues of UK£176.2m in 2025. If met, it would imply a reasonable 7.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.8% to UK£0.049. Before this earnings report, the analysts had been forecasting revenues of UK£176.5m and earnings per share (EPS) of UK£0.046 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at UK£0.83, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Foxtons Group, with the most bullish analyst valuing it at UK£1.03 and the most bearish at UK£0.62 per share. 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. We would highlight that Foxtons Group's revenue growth is expected to slow, with the forecast 7.5% annualised growth rate until the end of 2025 being well below the historical 11% 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 3.1% annually. So it's pretty clear that, while Foxtons 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 Foxtons Group following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at UK£0.83, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Foxtons Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Foxtons Group going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether Foxtons Group's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.