Yahoo Finance Earnings Update: CTS Eventim AG & Co. KGaA (ETR:EVD) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts
It's been a good week for CTS Eventim AG & Co. KGaA (ETR:EVD) shareholders, because the company has just released its latest yearly results, and the shares gained 8.9% to €82.45. It was a workmanlike result, with revenues of €2.4b coming in 3.3% ahead of expectations, and statutory earnings per share of €2.86, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for CTS Eventim KGaA
Taking into account the latest results, the most recent consensus for CTS Eventim KGaA from nine analysts is for revenues of €2.51b in 2024. If met, it would imply a modest 6.5% increase on its revenue over the past 12 months. Statutory per share are forecast to be €2.81, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €2.40b and earnings per share (EPS) of €2.70 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of €78.60, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. The most optimistic CTS Eventim KGaA analyst has a price target of €95.00 per share, while the most pessimistic values it at €60.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that CTS Eventim KGaA's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% annually. So it's pretty clear that, while CTS Eventim KGaA's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards CTS Eventim KGaA 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 estimates - from multiple CTS Eventim KGaA analysts - 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 CTS Eventim KGaA , and understanding this 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.
