Rentokil Initial plc (LON:RTO) shareholders are probably feeling a little disappointed, since its shares fell 2.5% to UK£3.62 in the week after its latest half-yearly results. Revenues were in line with forecasts, at UK£2.7b, although statutory earnings per share came in 18% below what the analysts expected, at UK£0.056 per share. 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.

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Following the recent earnings report, the consensus from twelve analysts covering Rentokil Initial is for revenues of UK£5.36b in 2025. This implies a measurable 3.1% decline in revenue compared to the last 12 months. Per-share earnings are expected to surge 28% to UK£0.12. In the lead-up to this report, the analysts had been modelling revenues of UK£5.37b and earnings per share (EPS) of UK£0.14 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

Check out our latest analysis for Rentokil Initial

It might be a surprise to learn that the consensus price target was broadly unchanged at UK£4.23, 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. Currently, the most bullish analyst values Rentokil Initial at UK£5.50 per share, while the most bearish prices it at UK£3.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 6.1% by the end of 2025. This indicates a significant reduction from annual growth of 19% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.5% per year. It's pretty clear that Rentokil Initial's revenues are expected to perform substantially worse than the wider industry.

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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. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Rentokil Initial going out to 2027, and you can see them free on our platform here..

Plus, you should also learn about the  4 warning signs  we've spotted with Rentokil Initial (including 1 which shouldn't be ignored) .

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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.

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