Turners Automotive Group Limited Just Beat Revenue By 5.4%: Here's What Analysts Think Will Happen Next

Turners Automotive Group Limited (NZSE:TRA) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of NZ$414m arriving 5.4% ahead of forecasts. Statutory earnings per share (EPS) were NZ$0.46, 4.3% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, Turners Automotive Group's two analysts currently expect revenues in 2026 to be NZ$417.8m, approximately in line with the last 12 months. Per-share earnings are expected to swell 13% to NZ$0.48. In the lead-up to this report, the analysts had been modelling revenues of NZ$431.5m and earnings per share (EPS) of NZ$0.45 in 2026. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

View our latest analysis for Turners Automotive Group

The average price target increased 12% to NZ$6.66, with the analysts signalling that the improved earnings outlook is more important to the company's valuation than its revenue.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Turners Automotive Group's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 0.9% growth on an annualised basis. This is compared to a historical growth rate of 7.6% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.1% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Turners Automotive Group.

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 Turners Automotive Group 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. Even so, earnings are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on Turners Automotive Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Turners Automotive Group (1 shouldn't be ignored!) that you need to be mindful of.

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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.