Yahoo Finance Deutsche Telekom AG Yearly Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
It's been a good week for Deutsche Telekom AG (ETR:DTE) shareholders, because the company has just released its latest full-year results, and the shares gained 5.6% to €16.50. Results overall were respectable, with statutory earnings of €0.82 per share roughly in line with what analysts had forecast. Revenues of €83b came in 3.6% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what analysts are expecting for next year.
See our latest analysis for Deutsche Telekom
Taking into account the latest results, Deutsche Telekom's 18 analysts currently expect revenues in 2020 to be €82.3b, approximately in line with the last 12 months. Statutory earnings per share are expected to grow 18% to €0.97. In the lead-up to this report, analysts had been modelling revenues of €82.3b and earnings per share (EPS) of €0.99 in 2020. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Analysts reconfirmed their price target of €16.97, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Deutsche Telekom at €20.00 per share, while the most bearish prices it at €12.10. This shows there is still quite 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.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the Deutsche Telekom's past performance and to peers in the same market. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.8% a significant reduction from annual growth of 4.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 1.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect Deutsche Telekom to grow slower than the wider market.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Deutsche Telekom's revenues are expected to perform worse than the wider market. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have forecasts for Deutsche Telekom going out to 2023, and you can see them free on our platform here.
You can also view our analysis of Deutsche Telekom's balance sheet, and whether we think Deutsche Telekom is carrying too much debt, for free on our platform here.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
