Yahoo Finance Yandex N.V. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
It's been a pretty great week for Yandex N.V. (NASDAQ:YNDX) shareholders, with its shares surging 11% to US$67.73 in the week since its latest first-quarter results. The results don't look great, especially considering that the analysts had been forecasting a profit and Yandex delivered a statutory loss of ₽11.29 per share. Revenues of ₽73b did beat expectations by 4.7% though. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Yandex
After the latest results, the 17 analysts covering Yandex are now predicting revenues of ₽328.8b in 2021. If met, this would reflect a sizeable 34% improvement in sales compared to the last 12 months. Per-share earnings are expected to grow 19% to ₽52.66. Before this earnings report, the analysts had been forecasting revenues of ₽326.1b and earnings per share (EPS) of ₽58.33 in 2021. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at ₽5,776, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Yandex, with the most bullish analyst valuing it at ₽87.00 and the most bearish at ₽57.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Yandex's rate of growth is expected to accelerate meaningfully, with the forecast 48% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 26% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 16% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Yandex 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. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at ₽5,776, with the latest estimates not enough to have an impact on their price targets.
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 Yandex going out to 2025, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for Yandex that you need to take into consideration.
This article by Simply Wall St is general in nature. 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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