Yahoo Finance Results: Telenet Group Holding NV Beat Earnings Expectations And Analysts Now Have New Forecasts
It's been a good week for Telenet Group Holding NV (EBR:TNET) shareholders, because the company has just released its latest quarterly results, and the shares gained 10.0% to €38.08. Revenues were €653m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at €1.39, an impressive 83% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for Telenet Group Holding
Taking into account the latest results, Telenet Group Holding's 13 analysts currently expect revenues in 2020 to be €2.60b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 3.3% to €3.29 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.59b and earnings per share (EPS) of €3.29 in 2020. 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.
There were no changes to revenue or earnings estimates or the price target of €42.61, suggesting that the company has met expectations in its recent result. 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 Telenet Group Holding, with the most bullish analyst valuing it at €60.00 and the most bearish at €32.80 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. We would highlight that sales are expected to reverse, with the forecast 0.5% revenue decline a notable change from historical growth of 7.8% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 1.5% next year. It's pretty clear that Telenet Group Holding's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Telenet Group Holding's revenues are expected to perform worse than the wider industry. 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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Telenet Group Holding going out to 2024, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 3 warning signs for Telenet Group Holding (1 makes us a bit uncomfortable!) that you should be aware of.
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