Yahoo Finance AUTO1 Group SE (ETR:AG1) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
The investors in AUTO1 Group SE's (ETR:AG1) will be rubbing their hands together with glee today, after the share price leapt 42% to €6.89 in the week following its quarterly results. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for AUTO1 Group
After the latest results, the eleven analysts covering AUTO1 Group are now predicting revenues of €5.69b in 2024. If met, this would reflect a satisfactory 5.2% improvement in revenue compared to the last 12 months. Yet prior to the latest earnings, the analysts had been forecasting revenues of €5.70b and losses of €0.24 per share in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.
There's been no real change to the consensus price target of €6.92, with AUTO1 Group seemingly executing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on AUTO1 Group, with the most bullish analyst valuing it at €13.00 and the most bearish at €4.00 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that AUTO1 Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.0% growth on an annualised basis. This is compared to a historical growth rate of 15% over the past three years. Compare this to the 21 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.6% per year. Factoring in the forecast slowdown in growth, it looks like AUTO1 Group is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €6.92, with the latest estimates not enough to have an impact on their price targets.
We have estimates for AUTO1 Group from its eleven analysts out to 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 2 warning signs for AUTO1 Group (1 is a bit concerning!) 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.
