DFS Furniture plc Just Recorded A 48% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in DFS Furniture plc (LON:DFS) had a good week, as its shares rose 6.9% to close at UK£1.54 following the release of its full-year results. Revenues were UK£1.0b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at UK£0.10, an impressive 48% 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on DFS Furniture after the latest results.

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Taking into account the latest results, the most recent consensus for DFS Furniture from four analysts is for revenues of UK£1.08b in 2026. If met, it would imply a credible 5.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 38% to UK£0.14. In the lead-up to this report, the analysts had been modelling revenues of UK£1.08b and earnings per share (EPS) of UK£0.14 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.

See our latest analysis for DFS Furniture

The analysts reconfirmed their price target of UK£2.12, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on DFS Furniture, with the most bullish analyst valuing it at UK£3.00 and the most bearish at UK£1.30 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.

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. It's clear from the latest estimates that DFS Furniture's rate of growth is expected to accelerate meaningfully, with the forecast 5.2% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 3.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that DFS Furniture is expected to grow much faster than its industry.

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, 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£2.12, 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 DFS Furniture analysts - going out to 2028, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for DFS Furniture that we have uncovered.

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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.