Earnings Beat: Victorian Plumbing Group plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for Victorian Plumbing Group plc (LON:VIC) shareholders, because the company has just released its latest annual results, and the shares gained 9.5% to UK£0.76. Revenues were UK£310m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at UK£0.042, an impressive 27% ahead of estimates. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Victorian Plumbing Group's eight analysts is for revenues of UK£329.3m in 2026. This reflects a satisfactory 6.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 9.5% to UK£0.043. In the lead-up to this report, the analysts had been modelling revenues of UK£330.0m and earnings per share (EPS) of UK£0.039 in 2026. So the consensus seems to have become somewhat more optimistic on Victorian Plumbing Group's earnings potential following these results.

Check out our latest analysis for Victorian Plumbing Group

There's been no major changes to the consensus price target of UK£1.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Victorian Plumbing Group at UK£1.32 per share, while the most bearish prices it at UK£0.70. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Victorian Plumbing Group'shistorical trends, as the 6.2% annualised revenue growth to the end of 2026 is roughly in line with the 5.3% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.6% annually. So it's pretty clear that Victorian Plumbing Group is forecast to grow substantially faster than its industry.

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 Victorian Plumbing 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£1.00, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Victorian Plumbing Group analysts - going out to 2028, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our 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.