Yahoo Finance Star Energy Group Plc Just Missed Earnings; Here's What Analysts Are Forecasting Now
Investors in Star Energy Group Plc (LON:STAR) had a good week, as its shares rose 8.3% to close at UK£0.12 following the release of its annual results. Things were not great overall, with a surprise (statutory) loss of UK£0.035 per share on revenues of UK£49m, even though the analysts had been expecting a profit. 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 Star Energy Group
Taking into account the latest results, the twin analysts covering Star Energy Group provided consensus estimates of UK£45.5m revenue in 2024, which would reflect an uneasy 8.1% decline over the past 12 months. Star Energy Group is also expected to turn profitable, with statutory earnings of UK£0.048 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£43.8m and earnings per share (EPS) of UK£0.051 in 2024. So it's pretty clear consensus is mixed on Star Energy Group after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.
Curiously, the consensus price target rose 11% to UK£0.56. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Star Energy Group's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 8.1% annualised decline to the end of 2024. That is a notable change from historical growth of 8.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 1.4% annually for the foreseeable future. The forecasts do look bearish for Star Energy Group, since they're expecting it to shrink faster than the industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Star Energy Group. They also upgraded their estimates, with revenue apparently performing well, although it is expected to lag the wider industry this year. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
You still need to take note of risks, for example - Star Energy Group has 2 warning signs we think you should be aware 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.
