Earnings Beat: Lion Finance Group PLC Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Lion Finance Group PLC (LON:BGEO) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.8% to hit GEL1.2b. Lion Finance Group reported statutory earnings per share (EPS) GEL14.25, which was a notable 10% above what the analysts had forecast. 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.
Taking into account the latest results, the most recent consensus for Lion Finance Group from five analysts is for revenues of GEL4.93b in 2026. If met, it would imply a meaningful 8.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 3.7% to GEL57.05. Before this earnings report, the analysts had been forecasting revenues of GEL4.88b and earnings per share (EPS) of GEL56.78 in 2026. 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.
See our latest analysis for Lion Finance Group
The consensus price target rose 7.1% to UK£141despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Lion Finance Group's earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Lion Finance Group, with the most bullish analyst valuing it at UK£145 and the most bearish at UK£135 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. We would highlight that Lion Finance Group's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2026 being well below the historical 26% 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 6.4% annually. Even after the forecast slowdown in growth, it seems obvious that Lion Finance Group is also expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Lion Finance Group analysts - going out to 2028, and you can see them free on our platform here.
Even so, be aware that Lion Finance Group is showing 2 warning signs in our investment analysis , you should know about...
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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.