Yahoo Finance CTS Eventim AG & Co. KGaA Just Beat Revenue Estimates By 82%
Last week, you might have seen that CTS Eventim AG & Co. KGaA (ETR:EVD) released its third-quarter result to the market. The early response was not positive, with shares down 5.4% to €54.70 in the past week. Sales of €694m came in a notable 82% ahead of expectations, while statutory earnings of €0.92 were in line with what the analysts had been forecasting. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for CTS Eventim KGaA
Taking into account the latest results, the consensus forecast from CTS Eventim KGaA's seven analysts is for revenues of €1.77b in 2023, which would reflect a credible 6.9% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be €1.92, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €1.73b and earnings per share (EPS) of €1.91 in 2023. There doesn't appear to have been a major change in sentiment following the results, other than the small lift in revenue estimates.
Even though revenue forecasts increased, there was no change to the consensus price target of €63.29, suggesting the analysts are focused on earnings as the driver of value creation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic CTS Eventim KGaA analyst has a price target of €80.00 per share, while the most pessimistic values it at €50.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. One thing stands out from these estimates, which is that CTS Eventim KGaA is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.5% annualised growth until the end of 2023. If achieved, this would be a much better result than the 14% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.8% annually. So it looks like CTS Eventim KGaA is expected to grow faster than its competitors, at least for a while.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at €63.29, with the latest estimates not enough to have an impact on their price targets.
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 estimates - from multiple CTS Eventim KGaA analysts - going out to 2024, and you can see them free on our platform here.
You still need to take note of risks, for example - CTS Eventim KGaA has 1 warning sign we think you should be aware 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.
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