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Shareholders might have noticed that Frequentis AG (ETR:FQT) filed its yearly result this time last week. The early response was not positive, with shares down 3.3% to €26.60 in the past week. Frequentis beat revenue expectations by 3.7%, at €432m. Statutory earnings per share (EPS) came in at €1.39, some 6.1% short of analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Frequentis
After the latest results, the two analysts covering Frequentis are now predicting revenues of €440.3m in 2024. If met, this would reflect a satisfactory 2.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 10% to €1.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of €441.3m and earnings per share (EPS) of €1.69 in 2024. 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 €33.23, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
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 Frequentis' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 8.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Frequentis.
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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Frequentis' revenue is expected to perform worse than the wider industry. The consensus price target held steady at €33.23, with the latest estimates not enough to have an impact on their price targets.