Agile Group Holdings Limited Just Recorded A 14% EPS Beat: Here's What Analysts Are Forecasting Next

Agile Group Holdings Limited (HKG:3383) just released its latest full-year results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.2% to hit CN¥80b. Agile Group Holdings reported statutory earnings per share (EPS) CN¥2.44, which was a notable 14% above what the analysts had forecast. 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.

See our latest analysis for Agile Group Holdings

After the latest results, the 14 analysts covering Agile Group Holdings are now predicting revenues of CN¥97.0b in 2021. If met, this would reflect a sizeable 21% improvement in sales compared to the last 12 months. Per-share earnings are expected to accumulate 5.1% to CN¥2.56. Before this earnings report, the analysts had been forecasting revenues of CN¥91.7b and earnings per share (EPS) of CN¥2.39 in 2021. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 6.9% to CN¥11.09per share. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Agile Group Holdings, with the most bullish analyst valuing it at CN¥18.12 and the most bearish at CN¥9.73 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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 Agile Group Holdings' rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Agile Group Holdings is expected to grow much faster than its industry.

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 Agile Group Holdings following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Agile Group Holdings analysts - going out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Agile Group Holdings (1 is concerning!) that you need to take into consideration.

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