Yahoo Finance €50.25 - That's What Analysts Think init innovation in traffic systems SE (ETR:IXX) Is Worth After These Results
It's been a good week for init innovation in traffic systems SE (ETR:IXX) shareholders, because the company has just released its latest annual results, and the shares gained 9.4% to €33.90. Results were roughly in line with estimates, with revenues of €211m and statutory earnings per share of €1.54. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for init innovation in traffic systems
After the latest results, the twin analysts covering init innovation in traffic systems are now predicting revenues of €254.3m in 2024. If met, this would reflect a major 21% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 13% to €1.74. Before this earnings report, the analysts had been forecasting revenues of €246.8m and earnings per share (EPS) of €1.89 in 2024. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a major to revenue, the consensus also made a small dip in its earnings per share forecasts.
Curiously, the consensus price target rose 5.8% to €50.25. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings.
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. It's clear from the latest estimates that init innovation in traffic systems' rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 6.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that init innovation in traffic systems is expected to grow much faster than its 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.
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 analyst estimates for init innovation in traffic systems going out as far as 2026, and you can see them free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for init innovation in traffic systems that you need to be mindful of.
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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.
