There's been a notable change in appetite for Aston Martin Lagonda Global Holdings plc (LON:AML) shares in the week since its full-year report, with the stock down 14% to UK£0.65. It was a pretty bad result overall; while revenues were in line with expectations at UK£1.6b, statutory losses exploded to UK£0.39 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Aston Martin Lagonda Global Holdings after the latest results.LSE:AML Earnings and Revenue Growth March 29th 2025

After the latest results, the eight analysts covering Aston Martin Lagonda Global Holdings are now predicting revenues of UK£1.73b in 2025. If met, this would reflect a solid 9.3% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 45% to UK£0.19. Before this latest report, the consensus had been expecting revenues of UK£1.76b and UK£0.19 per share in losses.

Check out our latest analysis for Aston Martin Lagonda Global Holdings

The analysts trimmed their valuations, with the average price target falling 5.8% to UK£1.29, with the ongoing losses seemingly weighing on sentiment, despite no real changes to the earnings forecasts. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Aston Martin Lagonda Global Holdings analyst has a price target of UK£2.00 per share, while the most pessimistic values it at UK£0.79. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Aston Martin Lagonda Global Holdings' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.3% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.8% per year. So it's pretty clear that, while Aston Martin Lagonda Global Holdings' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

Story Continues

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Aston Martin Lagonda Global Holdings' future valuation.

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 Aston Martin Lagonda Global Holdings going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Aston Martin Lagonda Global Holdings has  1 warning sign  we think you should be aware of.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

View Comments