Yahoo Finance Super Group (SGHC) Limited Just Beat EPS By 171%: Here's What Analysts Think Will Happen Next
As you might know, Super Group (SGHC) Limited (NYSE:SGHC) just kicked off its latest first-quarter results with some very strong numbers. The company beat forecasts, with revenue of €379m, some 4.5% above estimates, and statutory earnings per share (EPS) coming in at €0.082, 171% ahead of expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for Super Group (SGHC)
Following the latest results, Super Group (SGHC)'s four analysts are now forecasting revenues of €1.54b in 2024. This would be a credible 4.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 331% to €0.28. Before this earnings report, the analysts had been forecasting revenues of €1.57b and earnings per share (EPS) of €0.26 in 2024. Although the revenue estimates have not really changed, we can see there's been a nice gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target rose 10% to US$5.33, suggesting that higher earnings estimates flow through to the stock's valuation as well. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Super Group (SGHC) at US$6.00 per share, while the most bearish prices it at US$5.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Super Group (SGHC)'s revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 7.8% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Super Group (SGHC) is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Super Group (SGHC)'s earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Super Group (SGHC)'s revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Super Group (SGHC). Long-term earnings power is much more important than next year's profits. We have forecasts for Super Group (SGHC) going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Super Group (SGHC) you should know about.
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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.
