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Revenue Miss: Medios AG Fell 9.1% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

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Shareholders might have noticed that Medios AG (ETR:ILM1) filed its quarterly result this time last week. The early response was not positive, with shares down 5.7% to €14.68 in the past week. Results look mixed - while revenue fell marginally short of analyst estimates at €493m, statutory earnings were in line with expectations, at €0.79 per share. 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.

Check out our latest analysis for Medios

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XTRA:ILM1 Earnings and Revenue Growth November 15th 2024

Taking into account the latest results, the consensus forecast from Medios' four analysts is for revenues of €2.10b in 2025. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 212% to €1.57. Before this earnings report, the analysts had been forecasting revenues of €2.13b and earnings per share (EPS) of €1.58 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of €31.20, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Medios, with the most bullish analyst valuing it at €40.00 and the most bearish at €22.00 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Medios' past performance and to peers in the same industry. It's pretty clear that there is an expectation that Medios' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% annually. Even after the forecast slowdown in growth, it seems obvious that Medios is also expected to grow faster than the wider industry.