Lindsay Australia Limited Half-Year Results: Here's What Analysts Are Forecasting For Next Year
Investors in Lindsay Australia Limited (ASX:LAU) had a good week, as its shares rose 4.3% to close at AU$0.36 following the release of its half-yearly results. Results were roughly in line with estimates, with revenues of AU$216m and statutory earnings per share of AU$0.03. 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 thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Lindsay Australia
Following last week's earnings report, Lindsay Australia's only analyst are forecasting 2020 revenues to be AU$407.4m, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 3.8% to AU$0.03 in the same period. In the lead-up to this report, analysts had been modelling revenues of AU$407.4m and earnings per share (EPS) of AU$0.032 in 2020. Analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share forecasts for next year.
The consensus price target held steady at AU$0.40, with analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
Further, we can compare these estimates to past performance, and see how Lindsay Australia forecasts compare to the wider market's forecast performance. We would highlight that Lindsay Australia's revenue growth is expected to slow, with forecast 1.6% increase next year well below the historical 5.4%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the market, which are in aggregate expected to see revenue growth of 5.0% next year. Factoring in the forecast slowdown in growth, it seems obvious that analysts still expect Lindsay Australia to grow slower than the wider market.
The Bottom Line
The biggest concern with the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Lindsay Australia. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. The consensus price target held steady at AU$0.40, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Lindsay Australia going out as far as 2022, and you can see them free on our platform here.
It might also be worth considering whether Lindsay Australia's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
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