Analysts Are Updating Their IMI plc (LON:IMI) Estimates After Its Half-Year Results
As you might know, IMI plc (LON:IMI) recently reported its interim numbers. Results were roughly in line with estimates, with revenues of UK£1.2b and statutory earnings per share of UK£1.24. 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.
Following last week's earnings report, IMI's 14 analysts are forecasting 2026 revenues to be UK£2.38b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 9.2% to UK£1.28 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£2.37b and earnings per share (EPS) of UK£1.32 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
View our latest analysis for IMI
It might be a surprise to learn that the consensus price target was broadly unchanged at UK£31.18, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic IMI analyst has a price target of UK£34.40 per share, while the most pessimistic values it at UK£25.60. This is a very narrow spread of estimates, implying either that IMI is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that IMI's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2026 being well below the historical 4.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than IMI.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for IMI. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that IMI's revenue is expected to perform worse than the wider industry. The consensus price target held steady at UK£31.18, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for IMI going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for IMI that you need to take into consideration.
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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.