Yahoo Finance Analysts Are Updating Their Tencent Music Entertainment Group (NYSE:TME) Estimates After Its Full-Year Results
As you might know, Tencent Music Entertainment Group (NYSE:TME) recently reported its full-year numbers. Tencent Music Entertainment Group reported CN¥28b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CN¥3.11 beat expectations, being 2.8% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Tencent Music Entertainment Group after the latest results.
Check out our latest analysis for Tencent Music Entertainment Group
Taking into account the latest results, the consensus forecast from Tencent Music Entertainment Group's 31 analysts is for revenues of CN¥28.6b in 2024. This reflects a reasonable 3.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 18% to CN¥3.72. Before this earnings report, the analysts had been forecasting revenues of CN¥28.6b and earnings per share (EPS) of CN¥3.72 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$12.88, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Tencent Music Entertainment Group analyst has a price target of US$17.77 per share, while the most pessimistic values it at US$8.92. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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 Tencent Music Entertainment Group's revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2024 being well below the historical 5.7% 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 8.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Tencent Music Entertainment Group.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$12.88, with the latest estimates not enough to have an impact on their price targets.
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 estimates - from multiple Tencent Music Entertainment Group analysts - going out to 2026, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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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.
