Earnings Update: Here's Why Analysts Just Lifted Their NCC Group plc (LON:NCC) Price Target To UK£2.63

Simply Wall St

It's been a good week for NCC Group plc (LON:NCC) shareholders, because the company has just released its latest half-yearly results, and the shares gained 8.3% to UK£2.68. It was a credible result overall, with revenues of UK£136m and statutory earnings per share of UK£0.042 both in line with analyst estimates, showing that NCC Group is executing in line with expectations. 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. 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 NCC Group

earnings-and-revenue-growth
earnings-and-revenue-growth

Taking into account the latest results, the current consensus from NCC Group's eight analysts is for revenues of UK£276.3m in 2021, which would reflect a credible 3.6% increase on its sales over the past 12 months. Per-share earnings are expected to leap 33% to UK£0.06. In the lead-up to this report, the analysts had been modelling revenues of UK£272.0m and earnings per share (EPS) of UK£0.052 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the decent improvement in earnings per share expectations following these results.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 14% to UK£2.63. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values NCC Group at UK£3.25 per share, while the most bearish prices it at UK£1.83. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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 NCC Group's revenue growth is expected to slow, with forecast 3.6% increase next year well below the historical 6.9%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.9% next year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than NCC Group.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards NCC Group following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for NCC Group going out to 2023, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for NCC Group that you need to take into consideration.

This article by Simply Wall St is general in nature. 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.

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

Latest Stories

  • ‘Keep the faith’: Biden relaunches ‘fireside chats’ with emotional call to woman who lost job due to Covid-19

    'We’re putting together a plan that provides for emergency relief to people who are desperate now,' president says in new weekly address to the American people

  • 95-year-old woman who worked as Nazi concentration camp secretary charged over 10,000 murders

    A 95-year-old woman has been charged as an accessory to the murder of 10,000 people because she worked as a secretary at a Nazi concentration camp, German prosecutors announced on Friday. The woman has not been named under German privacy laws but has been partially identified by local media as Irmgard F, a German pensioner living in a retirement home in Pinneberg, north of Hamburg. From June 1943 and April 1945 she worked as a secretary and typist for the commandant of Stutthof concentration camp, in present day Poland. She is charged with “assisting those responsible for the systematic killing of Jewish prisoners, Polish partisans and Soviet prisoners of war at the camp”. It is not the first time a woman has been charged over the Holocaust, but the decision to bring charges against a former secretary is the latest in a series of recent attempts to widen prosecutions beyond those directly involved in sending prisoners to their deaths.

  • Maxwell says U.S. is prosecuting her only because Jeffrey Epstein is dead

    Lawyers for the British socialite Ghislaine Maxwell have accused the U.S. government of prosecuting her for aiding Jeffrey Epstein's sexual abuses only because Epstein is dead and they want to hold someone else responsible. The accusation was made in one of several Thursday night court filings seeking to dismiss or narrow the case against Maxwell, who is accused of helping Epstein recruit three teenage girls for sex between 1994 and 1997, and then lying about it. Maxwell, 59, was charged last July, 11 months after Epstein killed himself in his Manhattan jail cell while awaiting sex trafficking charges.

  • Greene claims 'I'm fine with' getting kicked off her House committees: 'It'd be a waste of my time'

    Rep. Marjorie Taylor Greene (R-Ga.) on Friday declared she's been "freed" after being removed from her House committee assignments, claiming continuing to serve on them would have been a waste of time. The House of Representatives on Thursday voted to remove the controversial Georgia lawmaker from her committee assignments over a string of racist, anti-Semitic, and anti-Muslim comments and support for baseless conspiracy theories and violent rhetoric. In a press conference Friday, Greene said it was freeing to admit she "believed things that were wrong" in a speech the day before, during which she did not apologize but rather expressed regret for being "allowed to believe things that weren't true." "Going forward, I've been freed," Greene said Friday. "I do, I feel freed." Greene went on to claim that "I'd be wasting my time" by continuing to serve on House committees "because my conservative values wouldn't be heard," even though she also asserted removing her from them "stripped my voters of having representation to work for them." "I'm fine with being kicked off my committees because it'd be a waste of my time," she insisted. Greene went on to celebrate that she now has "a lot of free time on my hands," but she ended the press conference after refusing to address a question about her liking a Facebook post in 2019 calling for violence against House Speaker Nancy Pelosi (D-Calif.). More stories from theweek.comSenator Ivanka?CIA analyst involved with briefing Biden shouldn't be trusted after defending torture program, former Senate investigator says'Explosive' Woody Allen documentary featuring video account from 7-year-old Dylan Farrow to debut on HBO

  • Ex-GOP congressman suggests many Republicans are discussing whether to form a new anti-Trump party

    'A new faction within the party or one that operates independently of the party. That's the conversation that many Republicans are having'

  • Biden administration doesn't want to get 'mixed up' in Brexit over Northern Ireland border row

    Joe Biden doesn't want to get "mixed up" in Brexit over the Northern Ireland border row, an ally of the president has told the Sunday Telegraph, The source said the new White House administration is monitoring the situation carefully but is loathe to intervene, marking a significant departure from Donald Trump's foreign policy style. The European Union's recent blunder triggering Article 16 of the Northern Ireland protocol in a row over vaccines, threatening to effectively create a border on the island of Ireland, set off alarm bells in Washington DC. There was no public comment on the issue at the time from Mr Biden, who has made statements on the subject in the past and is deeply personally committed to the Good Friday Agreement, or from his administration. But it was considered the latest in a series of troubling diplomatic faux pas by the EU as the US seeks to rebuild relations. The Biden source told The Sunday Telegraph: "Whatever the EU or the UK does [in relation to Northern Ireland] the administration wants to tread carefully, wait and see what develops, and not take a hard position. It's a tough one because you have the UK, Ireland and the EU, and you can't win.

  • Man Who Pushed 91-Year-Old in Oakland Chinatown Assaults 2 Others Right After

    An unidentified assailant was caught on surveillance camera pushing a 91-year-old man to the ground in a recent unprovoked attack in Oakland Chinatown. The incident happened outside the Asian Resource Center at the corner of Harrison and 8th streets on Jan. 31, according to ABC7. The suspect reportedly approached two other victims shortly after the first attack, resulting in one of them losing consciousness, according to the Oakland Police Department’s statement.

  • Judge Declares Republican Claudia Tenney Winner of NY Congressional Race

    A New York judge has ordered the state to certify Republican Claudia Tenney as the victor in the state’s 22nd Congressional District elections, after months of delays brought on by errors in the vote-counting process. The decision narrows the already slim Democratic majority in the House of Representatives, which now stands at 221 seats compared to Republicans’ 212. Tenney defeated incumbent Democrat Anthony Brindisi by just 109 votes, winning back the seat she lost to Brindisi in 2018. The election was marred by problems including the discovery of uncounted ballots and what local media dubbed “StickyGate,” in which identifying post-it notes mysteriously fell off a batch of disputed ballots, leaving elections officials unsure if those ballots were counted or not. Additionally, a local county failed to process 2,400 voter registration applications before election day. New York Supreme Court justice Scott J. DelConte ruled that despite the errors in the election, the court was compelled to order the certification of Tenney as the winner. DelConte did not find evidence of election fraud. “The record in this election reflects that both candidates suffered the effects of systemic violations of state and federal election laws,” DelConte wrote in his ruling. The court “cannot investigate or respond to these systemic infringements upon voters’ rights.” Such an investigation would fall under the purview of the State Board of Elections, the U.S. Justice Department, or the governor. Nevertheless, DelConte wrote, “every single valid vote that was cast in New York’s 22nd Congressional District has been accounted for, and counted.” Tenney welcomed the judge’s ruling. “I’m honored to have won this race,” Tenney said in a statement. “It was a hard-fought campaign and I thank Anthony Brindisi for his service. Now that every legal vote has been counted, it’s time for the results to be certified.” The Brindisi campaign may continue to appeal the election results. Brindisi could also appeal to the House, which has the power to order a recount and even a new election. “I am shocked and surprised by this decision because of the countless errors and discrepancies that have occurred throughout this initial count,” Brindisi said. “I believe a full audit and hand recount is the only way to resolve this race.”

  • Harris has reportedly pushed Biden's coronavirus team to focus on overlooked communities

    After Vice President Kamala Harris received her second dose of the COVID-19 vaccine in a televised event at the National Institutes of Health in January, Rep. Joyce Beatty's (D-Ohio) phone lit up with calls from constituents who were "newly curious" about getting vaccinated themselves, she told The New York Times. As Beatty explained, watching a Black woman receive the vaccine "gave people hope and gave people education." Black Americans are nearly three times more likely to die from the coronavirus, the Times notes, but they are far less likely to be inoculated, in large part because of a lack of access, but also, some experts have pointed out, because of longstanding wariness about government-driven health programs. Harris, it seems, was able to ease some of those concerns with her public vaccination, and she also has reportedly pressed President Biden and his advisers in private to focus on how their policies will ensure less advantaged people in both urban and rural settings are protected against the virus. "The vice president pushed us hard, in a very good way," Jeffrey Zients, Biden's coronavirus response coordinator, told the Times. "She pushed me on, 'Where are we on mobile vaccination units? How many are we going to have, in what period of time? Are they going to be able to reach rural communities and urban communities? How much progress have you made?" Read more about Harris' role in the Biden administration so far at The New York Times. More stories from theweek.comSenator Ivanka?CIA analyst involved with briefing Biden shouldn't be trusted after defending torture program, former Senate investigator says'Explosive' Woody Allen documentary featuring video account from 7-year-old Dylan Farrow to debut on HBO

  • Mike Pence starting podcast to 'share the good news of conservatism'

    Barely two weeks after leaving office, the former US vice president Mike Pence has switched his attention to “attracting new hearts and minds to the conservative cause” as the host of a podcast directed at American youth. Mr Pence will become the first Ronald Reagan presidential scholar at the Young America’s Foundation (YAF), a group set up in the 1960s to promote conservative values among a generation of high school and college students and those just embarking on their working lives. Hosting a podcast will be familiar territory for Mr Pence, who was a prominent conservative radio voice in the Midwest for several years before his election to Congress in 2000. Billing himself as “Rush Limbaugh on decaf,” a milder version of the firebrand right-wing radio personality beloved by Donald Trump's supporters, Mr Pence hosted discussions on conservative and religious themes. “The Vice-President will certainly be focused on the conservative accomplishments of the last four years and projecting those accomplishments and lessons learned forward,” a Pence spokesperson said of the podcast, according to Politico.

  • Kyle Rittenhouse fires attorney who helped raise his $2 million bail

    Kyle Rittenhouse, 18, from Illinois who's accused of killing two people and wounding a third during a police brutality protest in Wisconsin last summer fired John Pierce, a California attorney who had been soliciting money for his case.

  • 10 Not-Cheesy Valentine’s Day Gifts to Give Your Friends

    Okay, one does include actual cheeseOriginally Appeared on Architectural Digest

  • Judge releases ‘Cowboys for Trump’ founder charged in Capitol riot

    Decision to detain 47 year-old while awaiting trial overturned by federal court that acknowledged 'deeply disturbing' past comments about Democrats

  • Biden administration suspends Trump asylum deals with El Salvador, Guatemala, Honduras

    The Biden administration said on Saturday it was immediately suspending Trump-era asylum agreements with El Salvador, Guatemala and Honduras, part of a bid to undo his Republican predecessor's hardline immigration policies. In a statement, State Department Secretary Antony Blinken said the United States had "suspended and initiated the process to terminate the Asylum Cooperative Agreements with the Governments of El Salvador, Guatemala, and Honduras as the first concrete steps on the path to greater partnership and collaboration in the region laid out by President Biden."

  • President Biden's flight home on Air Force One

    President Biden's first flight on Air Force One as commander-in-chief lasted 25 minutes — about one-third the time it takes for the Acela to trace his beloved Amtrak route from D.C. to Wilmington.What he's saying: It's a "great honor" to ride as president on the iconic symbol of American power and diplomacy, Biden told reporters on the tarmac upon landing at New Castle Air National Guard Base. Be smart: sign up FREE for the most influential newsletter in America.“You realize, they’ve used this air strip to practice landings for the 747 takeoffs for the president’s plane for a long time,” Biden said, with the nostalgia of someone with a home just five miles away. “Now I’m getting off that plane. It’s really kind of strange.”Behind the scenes: Axios was on board for Biden's sunset flight home to Delaware on Friday.At Joint Base Andrews, he tucked a challenge coin into the palm of the female colonel who greeted and saluted him before he boarded at 5:31 p.m. The flight was wheels up at 5:42 p.m. and landed at 6:07 p.m.The weekend family visit comes between his son Hunter's birthday and the Super Bowl, between a crucial COVID-19 budget framework vote and the impeachment trial of former President Trump.TVs aboard the flight showed ESPN — and CNN, a departure from his predecessor's viewing habits.Everyone including the president wore masks.Biden didn't talk politics with his press corps — nor did he make the customary trip to the back of the cabin for small talk amid the pandemic, opting instead for a short, outdoor gaggle after the flight.After 36 years in the U.S. Senate and eight years as Barack Obama's wingman, Biden has taken countless flights on all kinds of government aircraft. Friday's short flight was on the "baby" plane, a 757, not the big 747. It's “a great plane," he said. "It’s the same plane that we had as vice president, only it’s much nicer.”Get smarter, faster with the news CEOs, entrepreneurs and top politicians read. Sign up for Axios Newsletters here.

  • 117 inmates take over section of downtown St. Louis jail

    The incident began after a "defiant" inmate got into a fight with a corrections officer and other prisoners jumped in, officials said.

  • General behind Myanmar's bloodless coup plots future without Aung San Suu Kyi

    In the days after Myanmar’s civilian leader Aung San Suu Kyi was ousted in an early morning coup, the wide modern boulevards of the country’s Potemkin capital Naypyitaw remained silent and empty. A few military roadblocks and patrolling armoured vehicles were the only sign of the sudden army takeover that threatened to wipe out the country’s recent democratic progress in one audacious swoop. On Wednesday, carefully orchestrated television footage showed a diminutive figure in military uniform conducting government business from a golden, throne-like armchair. Those searching for motives behind the Monday morning putsch that imprisoned Ms Suu Kyi and plunged Myanmar back towards oppressive junta rule need look no further than the service ribbons on the chest of General Min Aung Hlaing. The authoritarian general who is accused of overseeing an ethnic cleansing operation against the Muslim Rohingya minority is now at the centre of power in the former British colony that, unbtil recnently, projected such hope in its fledgling attempts establish democracy. Experts say the timing of the coup lies in Min Aung Hlaing’s ruthless personal quest for power and the military’s deep paranoia that the popular civilian government could erode the unrivalled political dominance it has enjoyed for decades.

  • House investigators are compiling Trump allies' pre-riot plans — and have video of Roger Stone hanging with a militia group

    House impeachment managers are preparing for former President Donald Trump's impeachment trial by figuring out just what he and his allies were up to the morning of the Capitol riot. Congressional investigators are wrapping up their case against Trump in the last few days before his Senate trial for allegedly inciting the insurrection begins Monday. Sources tell ABC News those investigators are "zeroing in on the actions of the president and his associates around the insurrection at the Capitol," specifically compiling social media posts and videos showing just what they were doing the morning of Jan. 6. Among those videos is one obtained by ABC News showing Trump's friend Roger Stone in Washington, D.C., that morning. Stone is seen outside of a hotel, taking pictures with supporters while seemingly under the watch of members of the Oath Keepers militia group. At one point, a supporter asked Stone, "So, hopefully we have this today, right?" "We shall see," Stone replied. Stone told ABC News that he had "no role whatsoever in the Jan. 6 events" and "never left the site of my hotel until leaving for Dulles Airport" later that afternoon. "I had no advance knowledge of the riot at the Capitol," and "could not even tell you the names of those who volunteered to provide security for me," he added. Stone was convicted of several felonies as a result of the Mueller investigation, but Trump commuted his sentence last summer. More stories from theweek.comSenator Ivanka?CIA analyst involved with briefing Biden shouldn't be trusted after defending torture program, former Senate investigator says'Explosive' Woody Allen documentary featuring video account from 7-year-old Dylan Farrow to debut on HBO

  • ‘Something has gone seriously awry’: Supreme Court strikes down California’s Covid ban on church worsip

    The court rejected similar restrictions in New York

  • Israel's Netanyahu calls ICC decision "pure anti-semitism"

    The decision prompted swift reactions from both Israel, which is not a member of the court and rejects its jurisdiction, and the Palestinian Authority, which welcomed the ruling.The ICC judges said their decision was based on the fact that Palestine has been granted membership to the tribunal's founding treaty, and had referred the situation to the court. The judges said the jurisdiction decision does not imply any attempt to determine Palestinian statehood, which is uncertain, or national borders.Netanyahu said 'ICC refuses to investigate brutal dictatorships like Iran and Syria, who commit horrific atrocities almost daily," and added that "we will fight this perversion of justice with all our might!"ICC Prosecutor Fatou Bensouda said her office was studying the decision and would decide what to do next "guided strictly by its independent and impartial mandate" to prosecute grave war crimes and atrocities when countries are unable or unwilling to do so themselves.Bensouda had found in December 2019 that "war crimes have been or are being committed in the West Bank, including East Jerusalem, and the Gaza Strip."She named both the Israeli Defense Forces and armed Palestinian groups such as Hamas as possible perpetrators.