Yahoo Finance Ströer SE & Co. KGaA (ETR:SAX) Just Released Its First-Quarter Earnings: Here's What Analysts Think
As you might know, Ströer SE & Co. KGaA (ETR:SAX) recently reported its quarterly numbers. Ströer SE KGaA reported in line with analyst predictions, delivering revenues of €453m and statutory earnings per share of €1.67, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Ströer SE KGaA
Taking into account the latest results, the most recent consensus for Ströer SE KGaA from ten analysts is for revenues of €2.10b in 2024. If met, it would imply a reasonable 7.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 61% to €2.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.10b and earnings per share (EPS) of €2.89 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at €67.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Ströer SE KGaA, with the most bullish analyst valuing it at €77.00 and the most bearish at €60.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 Ströer SE KGaA's rate of growth is expected to accelerate meaningfully, with the forecast 9.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.6% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ströer SE KGaA 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Ströer SE KGaA going out to 2026, and you can see them free on our platform here.
Even so, be aware that Ströer SE KGaA is showing 3 warning signs in our investment analysis , you should know about...
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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.
