Results: Janus Henderson Group plc beats earnings expectations and analysts now have new forecasts
As you may know, Janus Henderson Group plc (NYSE: JHG) just released its latest first quarter results with very strong numbers. Overall results were good, with revenues exceeding analysts’ expectations by 2.2% to reach US $ 644 million. Statutory earnings per share (EPS) stood at US $ 0.88, 8.6% higher than analysts had expected. This is an important time for investors, as they can follow a company’s performance in its report, look at what experts are forecasting for next year, and see if there has been a change in business expectations. ‘business. We put together the most recent statutory forecast to see if analysts have changed their earnings models as a result of these results. NYSE: JHG Earnings and Revenue Growth May 1, 2021
Based on the latest results, the consensus forecast of the 13 analysts at the Janus Henderson Group is for revenue of US $ 2.63 billion in 2021, which would reflect a significant 10% improvement in sales over the last 12. month. Statutory earnings per share are expected to fall 29% to US $ 2.22 over the same period. In preparing this report, analysts modeled revenues of US $ 2.57 billion and earnings per share (EPS) of US $ 2.96 in 2021. So it’s pretty clear that analysts have mixed opinions on Janus Henderson Group after the latest results; even though they increased their sales, it came at the cost of a pretty serious reduction in earnings per share expectations.
The consensus price target remained unchanged at US $ 34.97, suggesting the company is performing roughly as expected, despite some adjustments to earnings and revenue forecasts. Setting a single price target can be unwise, however, as the consensus target is actually the average of analysts’ price targets. As a result, some investors like to look at the range of estimates to see if there are any differing opinions on the valuation of the company. The most bullish analyst at the Janus Henderson Group has a price target of US $ 42.90 per share, while the most pessimistic puts it at US $ 29.00. Analysts certainly have differing views on the company, but the breakdown of the estimates is not broad enough in our view to suggest that extreme results may lie ahead for Janus Henderson Group shareholders.
One way to get more context on these forecasts is to look at how they stack up against both past performance and the performance of other companies in the same industry. We can infer from the latest estimates that the forecast calls for a continuation of historical trends for the Janus Henderson Group, as the annualized revenue growth of 14% through the end of 2021 roughly matches the annualized revenue growth of 17% in the past. over the past five years. In contrast, our data suggests that other companies (covered by analysts) in a similar industry are expected to see their revenues grow by 2.8% per year. So while the Janus Henderson Group is expected to maintain its rate of revenue growth, it is certainly expected to grow faster than the industry as a whole.
The bottom line
The most important thing to remember is that analysts have downgraded their earnings per share estimates, showing that there has been a marked drop in sentiment following these results. Thankfully, they’ve also updated their revenue estimates and predict revenue will grow faster than the industry as a whole. There has been no real change in the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With this in mind, we still believe that the long-term trajectory of the company is much more important for investors to consider. We have forecasts for Janus Henderson Group through 2025, and you can view them for free on our platform here.
You still have to take note of the risks, for example – Janus Henderson Group has 2 warning signs (and 1 which is potentially serious) we think you should be aware of.
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