Yahoo Finance ZEAL Network SE Just Missed EPS By 15%: Here's What Analysts Think Will Happen Next
Investors in ZEAL Network SE (ETR:TIMA) had a good week, as its shares rose 7.2% to close at €31.45 following the release of its full-year results. It was not a great result overall. While revenues of €116m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit €0.59 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for ZEAL Network
Taking into account the latest results, the most recent consensus for ZEAL Network from twin analysts is for revenues of €127.4m in 2024. If met, it would imply a solid 9.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 30% to €0.77. Before this earnings report, the analysts had been forecasting revenues of €127.4m and earnings per share (EPS) of €1.01 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.
Despite cutting their earnings forecasts,the analysts have lifted their price target 10% to €47.00, suggesting that these impacts are not expected to weigh on the stock's value in the long term.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. One thing stands out from these estimates, which is that ZEAL Network is forecast to grow faster in the future than it has in the past, with revenues expected to display 9.4% annualised growth until the end of 2024. If achieved, this would be a much better result than the 6.3% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.5% per year. So while ZEAL Network's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 1 warning sign for ZEAL Network 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.
