The Telekom Austria AG (VIE:TKA) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Telekom Austria AG (VIE:TKA) shareholders, because the company has just released its latest second-quarter results, and the shares gained 3.7% to €6.45. It looks like the results were a bit of a negative overall. While revenues of €1.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.9% to hit €0.49 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Telekom Austria

Taking into account the latest results, Telekom Austria's seven analysts currently expect revenues in 2020 to be €4.55b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 3.6% to €0.54 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.53b and earnings per share (EPS) of €0.54 in 2020. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €7.54. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Telekom Austria, with the most bullish analyst valuing it at €8.73 and the most bearish at €6.00 per share. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.6%, a significant reduction from annual growth of 2.4% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.0% next year. It's pretty clear that Telekom Austria's revenues are expected to perform substantially worse than the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Telekom Austria's revenues are expected to perform worse than the wider industry. The consensus price target held steady at €7.54, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Telekom Austria. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Telekom Austria analysts - going out to 2024, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Telekom Austria .

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