Turners Automotive Group Limited Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Turners Automotive Group Limited (NZSE:TRA) had a good week, as its shares rose 6.4% to close at NZ$4.16 following the release of its full-year results. It was a pretty mixed result, with revenues beating expectations to hit NZ$417m. Statutory earnings fell 7.0% short of analyst forecasts, reaching NZ$0.38 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Turners Automotive Group

Following the recent earnings report, the consensus from three analysts covering Turners Automotive Group is for revenues of NZ$397.3m in 2025. This implies a small 4.7% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 11% to NZ$0.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of NZ$409.9m and earnings per share (EPS) of NZ$0.43 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

The analysts made no major changes to their price target of NZ$4.96, suggesting the downgrades are not expected to have a long-term impact on Turners Automotive Group's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.7% by the end of 2025. This indicates a significant reduction from annual growth of 5.9% 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 6.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Turners Automotive Group is expected to lag 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. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Turners Automotive Group analysts - going out to 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Turners Automotive Group you should be aware of, and 1 of them shouldn't be ignored.

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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.