FDM Group (Holdings) plc (LON:FDM) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week saw the newest yearly earnings release from FDM Group (Holdings) plc (LON:FDM), an important milestone in the company's journey to build a stronger business. Revenues of UK£268m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at UK£0.28, missing estimates by 2.0%. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for FDM Group (Holdings)

Following last week's earnings report, FDM Group (Holdings)'s seven analysts are forecasting 2021 revenues to be UK£264.9m, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 5.5% to UK£0.30. In the lead-up to this report, the analysts had been modelling revenues of UK£264.6m and earnings per share (EPS) of UK£0.30 in 2021. 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.

There were no changes to revenue or earnings estimates or the price target of UK£10.62, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic FDM Group (Holdings) analyst has a price target of UK£13.00 per share, while the most pessimistic values it at UK£9.55. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 1.1% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.6% annually for the foreseeable future. It's pretty clear that FDM Group (Holdings)'s revenues are expected to perform substantially worse than the wider industry.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse 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 FDM Group (Holdings). Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for FDM Group (Holdings) going out to 2023, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with FDM Group (Holdings) , and understanding it should be part of your investment process.

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This article by Simply Wall St is general in nature. 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.
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