EQT Holdings Limited (ASX:EQT) Yearly Results: Here's What Analysts Are Forecasting For This Year

Last week saw the newest full-year earnings release from EQT Holdings Limited (ASX:EQT), an important milestone in the company's journey to build a stronger business. Revenues of AU$101m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$1.03, missing estimates by 2.5%. Following the result, the analyst has 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. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.

See our latest analysis for EQT Holdings

Taking into account the latest results, the most recent consensus for EQT Holdings from solitary analyst is for revenues of AU$110.0m in 2022 which, if met, would be a notable 8.8% increase on its sales over the past 12 months. Statutory earnings per share are predicted to swell 19% to AU$1.22. Before this earnings report, the analyst had been forecasting revenues of AU$108.9m and earnings per share (EPS) of AU$1.17 in 2022. So the consensus seems to have become somewhat more optimistic on EQT Holdings' earnings potential following these results.

There's been no major changes to the consensus price target of AU$38.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analyst is definitely expecting EQT Holdings' growth to accelerate, with the forecast 8.8% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that EQT Holdings is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around EQT Holdings' earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for EQT Holdings that you should be aware of.

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.

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