IPD Group Limited (ASX:IPG) Just Released Its Yearly Earnings: Here's What Analysts Think
It's been a pretty great week for IPD Group Limited (ASX:IPG) shareholders, with its shares surging 17% to AU$5.70 in the week since its latest full-year results. Results were roughly in line with estimates, with revenues of AU$414m and statutory earnings per share of AU$0.29. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for IPD Group from four analysts is for revenues of AU$459.9m in 2027. If met, it would imply a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 13% to AU$0.33. In the lead-up to this report, the analysts had been modelling revenues of AU$454.6m and earnings per share (EPS) of AU$0.32 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for IPD Group
There's been no major changes to the consensus price target of AU$6.20, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on IPD Group, with the most bullish analyst valuing it at AU$6.70 and the most bearish at AU$5.48 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company 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 IPD Group's past performance and to peers in the same industry. We would highlight that IPD Group's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2027 being well below the historical 23% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.9% per year. Even after the forecast slowdown in growth, it seems obvious that IPD Group is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards IPD Group following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for IPD Group going out to 2029, and you can see them free on our platform here..
You can also see whether IPD Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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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.