Analysts Have Made A Financial Statement On Accent Group Limited’s (ASX:AX1) Half-Year Report

Accent Group Limited (ASX:AX1) shareholders are probably feeling a little disappointed, since its shares fell 8.4% to AU$2.08 in the week after its latest half-yearly results. It was a credible result overall, with revenues of AU$742m and statutory earnings per share of AU$0.16 both in line with analyst estimates, showing that Accent Group is executing in line with 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Accent Group after the latest results.

View our latest analysis for Accent Group

After the latest results, the eleven analysts covering Accent Group are now predicting revenues of AU$1.44b in 2024. If met, this would reflect a reasonable 2.2% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of AU$1.44b and earnings per share (EPS) of AU$0.12 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

There’s been no real change to the consensus price target of AU$2.16, with Accent Group seemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Accent Group, with the most bullish analyst valuing it at AU$2.43 and the most bearish at AU$1.90 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Accent Group’s past performance and to peers in the same industry. We would highlight that Accent Group’s revenue growth is expected to slow, with the forecast 4.5% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.1% per year. So it’s pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Accent Group.

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The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that Accent Group’s revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

We have estimates for Accent Group from its eleven analysts out to 2026, and you can see them free on our platform here.

Don’t forget that there may still be risks. For instance, we’ve identified 1 warning sign for Accent Group that 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.