In This Article:
It's been a good week for ARB Corporation Limited (ASX:ARB) shareholders, because the company has just released its latest annual results, and the shares gained 3.4% to AU$41.60. Results were roughly in line with estimates, with revenues of AU$697m and statutory earnings per share of AU$1.25. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for ARB
After the latest results, the 14 analysts covering ARB are now predicting revenues of AU$758.0m in 2025. If met, this would reflect a notable 8.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.8% to AU$1.36. Before this earnings report, the analysts had been forecasting revenues of AU$762.4m and earnings per share (EPS) of AU$1.40 in 2025. 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 small dip in their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at AU$38.19, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ARB, with the most bullish analyst valuing it at AU$48.00 and the most bearish at AU$26.00 per share. 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 ARB shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of ARB'shistorical trends, as the 8.8% annualised revenue growth to the end of 2025 is roughly in line with the 9.6% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 8.8% annually. So although ARB is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.