EBOS Group Limited (NZSE:EBO) shareholders are probably feeling a little disappointed, since its shares fell 3.9% to NZ$35.91 in the week after its latest half-yearly results. EBOS Group reported in line with analyst predictions, delivering revenues of AU$6.5b and statutory earnings per share of AU$1.32, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on EBOS Group after the latest results.

See our latest analysis for EBOS Group  earnings-and-revenue-growth

Taking into account the latest results, the most recent consensus for EBOS Group from ten analysts is for revenues of AU$13.1b in 2024. If met, it would imply an okay 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted 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 minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at NZ$37.33, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on EBOS Group, with the most bullish analyst valuing it at NZ$40.70 and the most bearish at NZ$30.28 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.



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 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. So it's pretty clear that, while EBOS Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. 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 forecasts for EBOS Group going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for EBOS Group that you should be aware 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.