Proximus PLC Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

As you might know, Proximus PLC (EBR:PROX) just kicked off its latest second-quarter results with some very strong numbers. The company beat forecasts, with revenue of €1.6b, some 4.1% above estimates, and statutory earnings per share (EPS) coming in at €0.28, 23% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Proximus

Taking into account the latest results, the current consensus from Proximus' 15 analysts is for revenues of €6.32b in 2024. This would reflect a reasonable 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 2.9% to €1.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.24b and earnings per share (EPS) of €1.09 in 2024. So the consensus seems to have become somewhat more optimistic on Proximus' earnings potential following these results.

There's been no major changes to the consensus price target of €9.31, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Proximus analyst has a price target of €14.00 per share, while the most pessimistic values it at €6.60. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's clear from the latest estimates that Proximus' rate of growth is expected to accelerate meaningfully, with the forecast 6.5% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 1.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Proximus is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Proximus following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Proximus. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Proximus going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Proximus (1 doesn't sit too well with us!) that we have uncovered.

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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.

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