In This Article:
It's been a mediocre week for Cancom SE (ETR:COK) shareholders, with the stock dropping 16% to €23.56 in the week since its latest yearly results. Results were roughly in line with estimates, with revenues of €1.8b and statutory earnings per share of €0.99. 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.
Taking into account the latest results, Cancom's nine analysts currently expect revenues in 2025 to be €1.78b, approximately in line with the last 12 months. Per-share earnings are expected to rise 7.2% to €1.14. In the lead-up to this report, the analysts had been modelling revenues of €1.78b and earnings per share (EPS) of €1.25 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
See our latest analysis for Cancom
The consensus price target held steady at €27.91, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Cancom, with the most bullish analyst valuing it at €34.00 and the most bearish at €22.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cancom's past performance and to peers in the same industry. We would highlight that Cancom's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2025 being well below the historical 4.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Cancom is also expected to grow slower than other industry participants.