As you might know, FL Entertainment N.V. (AMS:FLE) recently reported its full-year numbers. The results were positive, with revenue coming in at €4.0b, beating analyst expectations by 4.3%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for FL Entertainment
Taking into account the latest results, the current consensus from FL Entertainment's three analysts is for revenues of €4.14b in 2023, which would reflect a credible 2.2% increase on its sales over the past 12 months. In the lead-up to this report, the analysts had been modelling revenues of €4.14b and earnings per share (EPS) of €0.48 in 2023. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate, suggesting that revenues are what the market is focusing on after the latest results.
We'd also point out that thatthe analysts have made no major changes to their price target of €10.83. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values FL Entertainment at €11.50 per share, while the most bearish prices it at €10.00. This is a very narrow spread of estimates, implying either that FL Entertainment is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that FL Entertainment's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 29% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that FL Entertainment is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse 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.