As you might know, FRP Advisory Group plc (LON:FRP) recently reported its yearly numbers. The result was positive overall - although revenues of UK£104m were in line with what the analysts predicted, FRP Advisory Group surprised by delivering a statutory profit of UK£0.053 per share, modestly greater than expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for FRP Advisory Group  earnings-and-revenue-growth

Taking into account the latest results, the consensus forecast from FRP Advisory Group's six analysts is for revenues of UK£109.2m in 2024. This reflects a satisfactory 5.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 22% to UK£0.067. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£108.6m and earnings per share (EPS) of UK£0.067 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of UK£1.79, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values FRP Advisory Group at UK£2.07 per share, while the most bearish prices it at UK£1.60. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. We would highlight that FRP Advisory Group's revenue growth is expected to slow, with the forecast 5.0% annualised growth rate until the end of 2024 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.7% per year. So it's pretty clear that, while FRP Advisory 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 there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 in mind, we wouldn't be too quick to come to a conclusion on FRP Advisory Group. Long-term earnings power is much more important than next year's profits. We have forecasts for FRP Advisory Group going out to 2026, 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 1 warning sign for FRP Advisory Group 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.

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