Analysts Have Lowered Expectations For Fadel Partners, Inc. (LON:FADL) After Its Latest Results

Fadel Partners, Inc. (LON:FADL) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. It looks like the results were pretty good overall. While revenues of US$14m were in line with analyst predictions, statutory losses were much smaller than expected, with Fadel Partners losing US$0.12 per share. The analyst 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 analyst has changed their earnings models, following these results.

See our latest analysis for Fadel Partners

Taking into account the latest results, the consensus forecast from Fadel Partners' single analyst is for revenues of US$16.3m in 2024. This reflects a decent 13% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.14 per share. Before this latest report, the consensus had been expecting revenues of US$17.6m and US$0.072 per share in losses. So it's pretty clear the analyst has mixed opinions on Fadel Partners after this update; revenues were downgraded and per-share losses expected to increase.

There was no major change to the consensus price target of UK£2.61, signalling that the business is performing roughly in line with expectations, despite lower earnings per share forecasts.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Fadel Partners' rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.9% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 10% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Fadel Partners is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analyst increased their loss per share estimates for next year. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. The consensus price target held steady at UK£2.61, with the latest estimates not enough to have an impact on their price target.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

You still need to take note of risks, for example - Fadel Partners has 3 warning signs we think 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.