Yahoo Finance ZEAL Network SE Just Beat Revenue Estimates By 6.9%
Investors in ZEAL Network SE (ETR:TIMA) had a good week, as its shares rose 2.8% to close at €37.10 following the release of its quarterly results. Results overall were respectable, with statutory earnings of €0.59 per share roughly in line with what the analysts had forecast. Revenues of €41m came in 6.9% ahead of analyst predictions. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for ZEAL Network
Following the latest results, ZEAL Network's four analysts are now forecasting revenues of €152.4m in 2024. This would be a notable 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to plunge 53% to €0.95 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €149.0m and earnings per share (EPS) of €1.18 in 2024. So it's pretty clear the analysts have mixed opinions on ZEAL Network after the latest results; even though they upped their revenue numbers, it came at the cost of a substantial drop in per-share earnings expectations.
There's been no major changes to the price target of €51.10, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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 ZEAL Network at €59.00 per share, while the most bearish prices it at €45.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting ZEAL Network is an easy business to forecast or the the analysts are all using similar assumptions.
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. The analysts are definitely expecting ZEAL Network's growth to accelerate, with the forecast 22% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect ZEAL Network to grow faster than the wider 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, they also upgraded their revenue estimates, and are forecasting them 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for ZEAL Network going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with ZEAL Network , and understanding it should be part of your investment process.
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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.
