Analysts Are Updating Their JD Sports Fashion Plc (LON:JD.) Estimates After Its Interim Results
It's been a good week for JD Sports Fashion Plc (LON:JD.) shareholders, because the company has just released its latest half-year results, and the shares gained 2.9% to UK£0.80. JD Sports Fashion reported in line with analyst predictions, delivering revenues of UK£5.9b and statutory earnings per share of UK£0.085, suggesting the business is executing well and in line with its plan. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following last week's earnings report, JD Sports Fashion's 17 analysts are forecasting 2027 revenues to be UK£12.6b, approximately in line with the last 12 months. Statutory earnings per share are forecast to plunge 20% to UK£0.093 in the same period. In the lead-up to this report, the analysts had been modelling revenues of UK£12.5b and earnings per share (EPS) of UK£0.095 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for JD Sports Fashion
It will come as no surprise then, to learn that the consensus price target is largely unchanged at UK£1.02. 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 JD Sports Fashion analyst has a price target of UK£1.80 per share, while the most pessimistic values it at UK£0.75. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.9% by the end of 2027. This indicates a significant reduction from annual growth of 9.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.7% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - JD Sports Fashion is expected to lag 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 JD Sports Fashion going out to 2029, and you can see them free on our platform here.
We also provide an overview of the JD Sports Fashion Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.