Results: TheWorks.co.uk plc Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders might have noticed that TheWorks.co.uk plc (LON:WRKS) filed its annual result this time last week. The early response was not positive, with shares down 8.6% to UK£0.29 in the past week. It looks like a credible result overall - although revenues of UK£280m were what the analysts expected, TheWorks.co.uk surprised by delivering a (statutory) profit of UK£0.084 per share, an impressive 133% above what was forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for TheWorks.co.uk

After the latest results, the dual analysts covering TheWorks.co.uk are now predicting revenues of UK£294.0m in 2024. If met, this would reflect a reasonable 5.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 10% to UK£0.093. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£293.5m and earnings per share (EPS) of UK£0.043 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

The consensus price target rose 12% to UK£0.63, suggesting that higher earnings estimates flow through to the stock's valuation as well.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TheWorks.co.uk's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 5.0% growth on an annualised basis. That is in line with its 5.9% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 5.8% per year. It's clear that while TheWorks.co.uk's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with 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 TheWorks.co.uk following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for TheWorks.co.uk going out as far as 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 5 warning signs for TheWorks.co.uk (1 shouldn't be ignored!) that you should be aware of.

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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.