Howden Joinery Group Plc (LON:HWDN) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates
Shareholders might have noticed that Howden Joinery Group Plc (LON:HWDN) filed its half-year result this time last week. The early response was not positive, with shares down 4.3% to UK£7.66 in the past week. Howden Joinery Group reported in line with analyst predictions, delivering revenues of UK£1.0b and statutory earnings per share of UK£0.49, suggesting the business is executing well and in line with its plan. 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.
Taking into account the latest results, the consensus forecast from Howden Joinery Group's 15 analysts is for revenues of UK£2.59b in 2026. This reflects a reasonable 5.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 5.3% to UK£0.51. Before this earnings report, the analysts had been forecasting revenues of UK£2.58b and earnings per share (EPS) of UK£0.51 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Howden Joinery Group
There were no changes to revenue or earnings estimates or the price target of UK£10.16, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Howden Joinery Group at UK£12.10 per share, while the most bearish prices it at UK£9.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Howden Joinery Group shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Howden Joinery Group's past performance and to peers in the same industry. The analysts are definitely expecting Howden Joinery Group's growth to accelerate, with the forecast 11% annualised growth to the end of 2026 ranking favourably alongside historical growth of 3.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Howden Joinery Group to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is 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.
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. We have forecasts for Howden Joinery Group 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 Howden Joinery Group 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.