Analysts Have Made A Financial Statement On NEXT plc's (LON:NXT) Full-Year Report

Shareholders of NEXT plc (LON:NXT) will be pleased this week, given that the stock price is up 12% to UK£110 following its latest yearly results. Revenues of UK£6.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at UK£6.06, missing estimates by 2.5%. 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 NEXT after the latest results.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Following the latest results, NEXT's 14 analysts are now forecasting revenues of UK£6.34b in 2026. This would be a satisfactory 3.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 7.6% to UK£6.78. Before this earnings report, the analysts had been forecasting revenues of UK£6.32b and earnings per share (EPS) of UK£6.74 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for NEXT

The analysts reconfirmed their price target of UK£110, showing that the business is executing well and in line with expectations. 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 NEXT, with the most bullish analyst valuing it at UK£134 and the most bearish at UK£96.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await NEXT shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that NEXT's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% 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 NEXT.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that NEXT's revenue is expected to perform worse than the wider industry. The consensus price target held steady at UK£110, 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 NEXT going out to 2028, and you can see them free on our platform here.

You can also see whether NEXT is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.