EBOS Group Limited (NZSE:EBO) Just Released Its Half-Year Earnings: Here's What Analysts Think

Last week, you might have seen that EBOS Group Limited (NZSE:EBO) released its half-yearly result to the market. The early response was not positive, with shares down 3.9% to NZ$35.91 in the past week. It was a credible result overall, with revenues of AU$6.5b and statutory earnings per share of AU$1.32 both in line with analyst estimates, showing that EBOS Group is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for EBOS Group

Following the latest results, EBOS Group's ten analysts are now forecasting revenues of AU$13.1b in 2024. This would be a satisfactory 3.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 11% to AU$1.49. Before this earnings report, the analysts had been forecasting revenues of AU$13.0b and earnings per share (EPS) of AU$1.54 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at NZ$37.33, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic EBOS Group analyst has a price target of NZ$40.70 per share, while the most pessimistic values it at NZ$30.28. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting EBOS Group is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EBOS Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that EBOS Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.4% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.0% per year. Even after the forecast slowdown in growth, it seems obvious that EBOS Group is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for EBOS Group. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at NZ$37.33, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on EBOS Group. 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 EBOS Group going out to 2026, 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 2 warning signs with EBOS Group , and understanding them should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.