ABOUT YOU Holding AG (FRA:YOU) just released its latest third-quarter report and things are not looking great. It was a pretty negative result overall, with revenues of €555m missing analyst predictions by 4.7%. Additionally, the business reported a statutory loss of €0.36 per share, larger than the analysts had forecast prior to the result. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for ABOUT YOU Holding
After the latest results, the ten analysts covering ABOUT YOU Holding are now predicting revenues of €2.20b in 2024. If met, this would reflect a solid 17% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 57% to €0.50. Before this earnings announcement, the analysts had been modelling revenues of €2.27b and losses of €0.49 per share in 2024.
The average price target fell 9.7% to €7.85, with the analysts clearly concerned about the weaker revenue outlook and expectation of ongoing losses. 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. Currently, the most bullish analyst values ABOUT YOU Holding at €15.00 per share, while the most bearish prices it at €4.70. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ABOUT YOU Holding's past performance and to peers in the same industry. It's pretty clear that there is an expectation that ABOUT YOU Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 13% annually. So it's pretty clear that, while ABOUT YOU Holding's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.