FBD Holdings plc Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Investors in FBD Holdings plc (ISE:EG7) had a good week, as its shares rose 9.1% to close at €15.00 following the release of its full-year results. It looks like a credible result overall - although revenues of €333m were what the analysts expected, FBD Holdings surprised by delivering a (statutory) profit of €1.76 per share, an impressive 58% above what was 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for FBD Holdings

Taking into account the latest results, the most recent consensus for FBD Holdings from three analysts is for revenues of €348.9m in 2023 which, if met, would be a satisfactory 4.6% increase on its sales over the past 12 months. Statutory earnings per share are expected to nosedive 31% to €1.25 in the same period. Before this earnings report, the analysts had been forecasting revenues of €348.6m and earnings per share (EPS) of €1.11 in 2023. Although the revenue estimates have not really changed, we can see there's been a substantial gain in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 11% to €14.63, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. There are some variant perceptions on FBD Holdings, with the most bullish analyst valuing it at €17.85 and the most bearish at €11.40 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that FBD Holdings is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.6% annualised growth until the end of 2023. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 9.2% per year. Although FBD Holdings' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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 FBD Holdings following these results. 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for FBD Holdings going out to 2025, and you can see them free on our platform here.

You still need to take note of risks, for example - FBD Holdings has 2 warning signs (and 1 which is concerning) we think you should know about.

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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.