Netwealth Group Limited (ASX:NWL) shareholders are probably feeling a little disappointed, since its shares fell 6.1% to AU$20.68 in the week after its latest annual results. Revenues of AU$255m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at AU$0.34, missing estimates by 2.7%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Netwealth Group  earnings-and-revenue-growth

Taking into account the latest results, the current consensus from Netwealth Group's 16 analysts is for revenues of AU$304.3m in 2025. This would reflect a meaningful 19% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 26% to AU$0.43. Yet prior to the latest earnings, the analysts had been anticipated revenues of AU$308.0m and earnings per share (EPS) of AU$0.44 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at AU$19.82, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Netwealth Group analyst has a price target of AU$24.50 per share, while the most pessimistic values it at AU$10.80. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Netwealth Group's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Netwealth Group'shistorical trends, as the 19% annualised revenue growth to the end of 2025 is roughly in line with the 18% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.2% annually. So although Netwealth Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.



The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still 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. We have forecasts for Netwealth Group going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Netwealth Group 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.