Next price: Analysts flag rise in FY revenue and earnings

Next price: Analysts flag rise in FY revenue and earnings

Next (LON:NXT) is expected to post a rise in revenue and earnings when it updates investors on its full-year performance next week. The results will come after the retailer trimmed its full-year profit guidance in January.

Next’s price has climbed higher in London in today’s session, having added 0.73 percent to 5,226.00p as of 14:45 GMT. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.43 percent higher at 7,216.64 points. The group’s shares have added some eight percent to their value over the past year, as compared with about a one-percent rise in the Footsie.

Next FY results preview

Next is scheduled to update investors on its full-year performance on Thursday, March 21, and IG reports that the group is expected to report a 4.2-percent rise in headline earnings per, to £4.33, while revenue is expected to have climbed 2.5 percent to £4.22 billion.

“Next has invested heavily in its online operation and, as a result it has weathered the crisis of the high street better than many of its peers,” IG’s market analyst Chris Beauchamp commented in a note yesterday, adding, however, that it looked “that a downsizing of the bricks-and-mortar part of the empire is likely, even with strenuous efforts to integrate shops with online sales”.

Next meanwhile estimates that its profit will fall in the new financial year and Proactive Investors has quoted UBS as saying that the one-percent decline in 2020 profits reflects ongoing channel shift pressures on cost ratios.

“At this early stage in the year, and with Brexit-related uncertainties persisting, we would be surprised to see any change in guidance,” the broker pointed out.

Analyst ratings update

The 19 analysts offering 12-month price targets for Next for the Financial Times have a median target of 4,800.00p on the shares, with a high estimate of 6,370.00p and a low estimate of 3,967.00p. As of March 9, the consensus forecast amongst 24 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.

As of 15:04 GMT, Friday, 15 March, NEXT plc price is 5,226.00p.

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