As you might know, Anexo Group Plc (LON:ANX) recently reported its yearly numbers. It was a pretty mixed result, with revenues beating expectations to hit UK£87m. Statutory earnings fell 3.6% short of analyst forecasts, reaching UK£0.11 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Anexo Group after the latest results.

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

Taking into account the latest results, the current consensus from Anexo Group's six analysts is for revenues of UK£92.4m in 2021, which would reflect a reasonable 6.5% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 27% to UK£0.14. Before this earnings report, the analysts had been forecasting revenues of UK£91.7m and earnings per share (EPS) of UK£0.15 in 2021. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at UK£2.21, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Anexo Group analyst has a price target of UK£2.80 per share, while the most pessimistic values it at UK£1.90. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Anexo Group shareholders.



Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Anexo Group's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Anexo Group.

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, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Anexo Group's revenues are expected to perform worse than the wider industry. The consensus price target held steady at UK£2.21, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Anexo Group analysts - going out to 2023, and you can see them 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 Anexo Group that you need to be mindful of.

This article by Simply Wall St is general in nature. 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.

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