It's been a good week for HomeToGo SE (ETR:HTG) shareholders, because the company has just released its latest first-quarter results, and the shares gained 4.5% to €3.05. It was an okay report, and revenues came in at €22m, approximately in line with analyst estimates leading up to the results announcement. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for HomeToGo
After the latest results, the four analysts covering HomeToGo are now predicting revenues of €177.5m in 2023. If met, this would reflect a meaningful 18% improvement in sales compared to the last 12 months. Before this latest report, the consensus had been expecting revenues of €175.1m and €0.37 per share in losses. 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 €6.58. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values HomeToGo at €7.00 per share, while the most bearish prices it at €6.00. This is a very narrow spread of estimates, implying either that HomeToGo is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that HomeToGo's revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2023 being well below the historical 44% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 15% per year. Even after the forecast slowdown in growth, it seems obvious that HomeToGo is also expected to grow faster than the wider industry.
The Bottom Line
The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €6.58, with the latest estimates not enough to have an impact on their price targets.