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It's been a good week for ZEAL Network SE (ETR:TIMA) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.4% to €43.00. It was a workmanlike result, with revenues of €41m coming in 6.9% ahead of expectations, and statutory earnings per share of €0.59, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ZEAL Network after the latest results.
See our latest analysis for ZEAL Network
Taking into account the latest results, the consensus forecast from ZEAL Network's five analysts is for revenues of €164.0m in 2024. This reflects a solid 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to tumble 24% to €1.65 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €161.9m and earnings per share (EPS) of €1.34 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.
There's been no major changes to the consensus price target of €53.67, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 ZEAL Network at €64.00 per share, while the most bearish prices it at €45.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
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. The analysts are definitely expecting ZEAL Network's growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that ZEAL Network is expected to grow much faster than its industry.