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Shareholders might have noticed that Volution Group plc (LON:FAN) filed its yearly result this time last week. The early response was not positive, with shares down 7.2% to UK£5.71 in the past week. Volution Group reported in line with analyst predictions, delivering revenues of UK£348m and statutory earnings per share of UK£0.21, suggesting the business is executing well and in line with its plan. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Volution Group
Taking into account the latest results, the current consensus from Volution Group’s eight analysts is for revenues of UK£412.7m in 2025. This would reflect a solid 19% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to expand 17% to UK£0.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£394.5m and earnings per share (EPS) of UK£0.24 in 2025. It looks like there’s been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
With these upgrades, we’re not surprised to see that the analysts have lifted their price target 6.2% to UK£6.29per share. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company’s valuation. There are some variant perceptions on Volution Group, with the most bullish analyst valuing it at UK£7.00 and the most bearish at UK£5.10 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 Volution Group shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Volution Group’s past performance and to peers in the same industry. It’s clear from the latest estimates that Volution Group’s rate of growth is expected to accelerate meaningfully, with the forecast 19% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 9.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Volution Group to grow faster than the wider industry.