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Top Ten Entertainment Group (Length: TEG) investors will be pleased, as the company’s latest results delivered some strong results. Overall, it was a positive result, with revenue beating expectations by 6.2% to £127m. Ten Entertainment Group also posted a statutory profit of £0.39, beating analysts’ forecasts by an impressive 21%. Analysts typically update their forecasts with each earnings report, and we can tell from their estimates whether their views on the company have changed, or if there are any new issues to be aware of. We thought it would be interesting for readers to see analysts’ latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Ten Entertainment Group
Five analysts covering Ten Entertainment Group are now forecasting £133m in revenue for 2023 following the release of the latest results. If realized, this would reflect a solid 5.0% increase in sales compared to the trailing 12 months. Statutory earnings per share are expected to fall by 19% to £0.31 over the same period. Ahead of the report, analysts had been modeling revenues of £133.6 million and earnings per share (EPS) of £0.31 in 2023. So it’s clear that despite analysts updating their estimates, expectations for the business haven’t changed significantly following the latest results.
The analyst reaffirmed his £3.86 price target, suggesting the business is executing well and in line with expectations. Still, there’s another way to think about price targets, and that’s by looking at the range of price targets put forward by analysts, since a wide range of estimates could indicate a different view of the likely outcome of the business. Currently, the most bullish analysts value Ten Entertainment Group at £4.50 per share, while the most pessimistic value it at £3.40. With such a narrow valuation range, analysts apparently share similar views on what they think the business is worth.
Another way we look at these estimates is in the larger context, such as how the forecast compares to past performance and whether the forecast is more optimistic relative to other companies industryWe can extrapolate from the latest estimates that the forecast expects the historical trend of the top ten entertainment groups to continue, as annualized revenue growth of 5.0% by the end of 2023 is roughly in line with the 5.7% annualized revenue growth of the past five years. Compare this to the broader industry (overall), for which analysts estimate revenue growth of 9.3% annually. So it’s clear that the top 10 entertainment conglomerates are expected to grow less than their peers in the same industry.
the bottom line
Most importantly, there has been no major change in sentiment, with analysts reconfirming that the business is performing in line with their previous EPS expectations. On the plus side, there were no major changes to the revenue forecast; although the forecast implied revenue would perform worse than the broader industry. The consensus price target has not really changed, suggesting that the intrinsic value of the business has not changed significantly based on the latest estimates.
Having said that, the long-term trajectory of a company’s earnings is much more important than next year.We predict Ten Entertainment Group will end in 2025, you can Check them out for free on our platform.
It is also worth noting that we found 3 Warning Signs of the Big Ten Entertainment Group (1 is important!) You need to consider.
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This article by Simply Wall St is general in nature. We use only an unbiased methodology to provide reviews based on historical data and analyst forecasts, 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 into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no positions in any of the stocks mentioned.
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