Analysts Have Made A Financial Statement On London Stock Exchange Group plc's (LON:LSEG) Half-Year Report
Last week, you might have seen that London Stock Exchange Group plc (LON:LSEG) released its half-yearly result to the market. The early response was not positive, with shares down 4.3% to UK£83.98 in the past week. London Stock Exchange Group reported in line with analyst predictions, delivering revenues of UK£5.0b and statutory earnings per share of UK£2.37, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on London Stock Exchange Group after the latest results.
After the latest results, the twelve analysts covering London Stock Exchange Group are now predicting revenues of UK£9.98b in 2026. If met, this would reflect a credible 3.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 15% to UK£3.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of UK£9.97b and earnings per share (EPS) of UK£2.70 in 2026. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
See our latest analysis for London Stock Exchange Group
The consensus price target was unchanged at UK£120, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 London Stock Exchange Group at UK£136 per share, while the most bearish prices it at UK£106. 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 London Stock Exchange Group's past performance and to peers in the same industry. We would highlight that London Stock Exchange Group's revenue growth is expected to slow, with the forecast 6.7% annualised growth rate until the end of 2026 being well below the historical 9.6% 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 0.5% annually. Even after the forecast slowdown in growth, it seems obvious that London Stock Exchange 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 London Stock Exchange Group following these results. 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.
With that in mind, we wouldn't be too quick to come to a conclusion on London Stock Exchange Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for London Stock Exchange 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 London Stock Exchange 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.