Earnings Miss: TT Electronics plc Missed EPS And Analysts Are Revising Their Forecasts

TT Electronics plc (LON:TTG) shareholders are probably feeling a little disappointed, since its shares fell 4.1% to UK£0.75 in the week after its latest full-year results. Revenues fell 3.2% short of expectations, at UK£521m. Earnings correspondingly dipped, with TT Electronics reporting a statutory loss of UK£0.30 per share, whereas the analysts had previously modelled a profit in this period. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on TT Electronics after the latest results.

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Taking into account the latest results, the six analysts covering TT Electronics provided consensus estimates of UK£507.4m revenue in 2025, which would reflect a measurable 2.6% decline over the past 12 months. Earnings are expected to improve, with TT Electronics forecast to report a statutory profit of UK£0.10 per share. Before this earnings report, the analysts had been forecasting revenues of UK£546.4m and earnings per share (EPS) of UK£0.15 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

Check out our latest analysis for TT Electronics

The consensus price target fell 11% to UK£1.26, with the weaker earnings outlook clearly leading valuation estimates. 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. The most optimistic TT Electronics analyst has a price target of UK£1.90 per share, while the most pessimistic values it at UK£0.88. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TT Electronics' past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 2.6% by the end of 2025. This indicates a significant reduction from annual growth of 6.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.6% per year. It's pretty clear that TT Electronics' revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of TT Electronics' future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for TT Electronics going out to 2027, 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 TT Electronics , and understanding this should be part of your investment process.

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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.