Here's What Analysts Are Forecasting For Kelsian Group Limited (ASX:KLS) After Its Full-Year Results

Shareholders might have noticed that Kelsian Group Limited (ASX:KLS) filed its full-year result this time last week. The early response was not positive, with shares down 7.9% to AU$4.31 in the past week. Revenues of AU$2.4b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$0.23, missing estimates by 2.1%. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, Kelsian Group's nine analysts currently expect revenues in 2027 to be AU$2.47b, approximately in line with the last 12 months. Statutory earnings per share are predicted to expand 16% to AU$0.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$2.42b and earnings per share (EPS) of AU$0.30 in 2027. 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 minor downgrade to their earnings per share forecasts.

Check out our latest analysis for Kelsian Group

The consensus price target held steady at AU$5.26, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Kelsian Group analyst has a price target of AU$6.10 per share, while the most pessimistic values it at AU$4.30. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that Kelsian Group's revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2027 being well below the historical 16% p.a. growth over the last five years. Compare this to the 5 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 1.9% per year. Factoring in the forecast slowdown in growth, it looks like Kelsian Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at AU$5.26, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Kelsian Group going out to 2029, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 2 warning signs for Kelsian Group (1 is a bit unpleasant!) 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.