Earnings Update: About You Holding SE (FRA:YOU) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

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Investors in About You Holding SE (FRA:YOU) had a good week, as its shares rose 5.5% to close at €3.48 following the release of its quarterly results. The result was fairly weak overall, with revenues of €518m being 3.1% less than what the analysts had been modelling. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on About You Holding after the latest results.

View our latest analysis for About You Holding

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DB:YOU Earnings and Revenue Growth July 14th 2024

Taking into account the latest results, the most recent consensus for About You Holding from nine analysts is for revenues of €2.03b in 2025. If met, it would imply a modest 4.4% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 40% to €0.34. Before this earnings announcement, the analysts had been modelling revenues of €2.06b and losses of €0.40 per share in 2025. Although the revenue estimates have not really changed About You Holding'sfuture looks a little different to the past, with a cut to the loss per share forecasts in particular.

The average price target held steady at €5.48, seeming to indicate that business is performing in line with expectations. 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 €7.00 per share, while the most bearish prices it at €3.60. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 About You Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 9.7% over the past three years. Compare this to the 22 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.8% per year. 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.