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GFT Technologies SE (ETR:GFT) shareholders are probably feeling a little disappointed, since its shares fell 8.9% to €21.10 in the week after its latest quarterly results. GFT Technologies reported €217m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.41 beat expectations, being 5.1% higher than what the analysts expected. 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 GFT Technologies
After the latest results, the five analysts covering GFT Technologies are now predicting revenues of €886.5m in 2024. If met, this would reflect a reasonable 3.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €1.83, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €911.7m and earnings per share (EPS) of €1.92 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
The analysts made no major changes to their price target of €44.80, suggesting the downgrades are not expected to have a long-term impact on GFT Technologies' valuation. 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 GFT Technologies at €52.00 per share, while the most bearish prices it at €33.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that GFT Technologies' revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2024 being well below the historical 20% p.a. growth over the last five years. Compare this to the 26 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.2% per year. So it's pretty clear that, while GFT Technologies' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.