Bytes Technology Group plc (LON:BYIT) Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Bytes Technology Group plc (LON:BYIT) shareholders are probably feeling a little disappointed, since its shares fell 5.9% to UK£5.08 in the week after its latest annual results. It was a pretty mixed result, with revenues beating expectations to hit UK£217m. Statutory earnings fell 4.8% short of analyst forecasts, reaching UK£0.22 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the consensus forecast from Bytes Technology Group's eight analysts is for revenues of UK£246.1m in 2026. This reflects a solid 13% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.1% to UK£0.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£241.1m and earnings per share (EPS) of UK£0.24 in 2026. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.

Check out our latest analysis for Bytes Technology Group

It may not be a surprise to see thatthe analysts have reconfirmed their price target of UK£6.04, implying that the uplift in revenue is not expected to greatly contribute to Bytes Technology Group's valuation in the near term. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Bytes Technology Group analyst has a price target of UK£6.60 per share, while the most pessimistic values it at UK£5.00. This is a very narrow spread of estimates, implying either that Bytes Technology Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. For example, we noticed that Bytes Technology Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 13% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 16% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.6% annually. Not only are Bytes Technology Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Bytes Technology Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Bytes Technology Group analysts - going out to 2028, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Bytes Technology Group that you need to take into consideration.

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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.