Wirtualna Polska Holding S.A. Just Missed EPS By 5.5%: Here's What Analysts Think Will Happen Next

It's been a good week for Wirtualna Polska Holding S.A. (WSE:WPL) shareholders, because the company has just released its latest annual results, and the shares gained 8.7% to zł125. It looks like the results were a bit of a negative overall. While revenues of zł1.4b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.5% to hit zł5.56 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Wirtualna Polska Holding

After the latest results, the five analysts covering Wirtualna Polska Holding are now predicting revenues of zł1.58b in 2024. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 28% to zł6.79. Yet prior to the latest earnings, the analysts had been anticipated revenues of zł1.58b and earnings per share (EPS) of zł6.89 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.5% to zł134. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Wirtualna Polska Holding at zł145 per share, while the most bearish prices it at zł120. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Wirtualna Polska Holding is an easy business to forecast or the the analysts are all using similar assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Wirtualna Polska Holding's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2024 being well below the historical 18% p.a. growth over the last five years. Compare this to the 7 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.9% per year. So it's pretty clear that, while Wirtualna Polska Holding's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Wirtualna Polska Holding. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Wirtualna Polska Holding analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Wirtualna Polska Holding that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.