Proximus PLC (EBR:PROX) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

Shareholders might have noticed that Proximus PLC (EBR:PROX) filed its annual result this time last week. The early response was not positive, with shares down 4.6% to €7.91 in the past week. It was a credible result overall, with revenues of €6.0b and statutory earnings per share of €1.11 both in line with analyst estimates, showing that Proximus is executing in line with expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Proximus

Taking into account the latest results, the consensus forecast from Proximus' 15 analysts is for revenues of €6.12b in 2024. This reflects a modest 2.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 6.3% to €1.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.23b and earnings per share (EPS) of €1.10 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 €10.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Proximus at €14.00 per share, while the most bearish prices it at €6.60. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Proximus' past performance and to peers in the same industry. The analysts are definitely expecting Proximus' growth to accelerate, with the forecast 2.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Proximus is expected to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €10.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Proximus analysts - going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Proximus (at least 2 which shouldn't be ignored) , and understanding these should be part of your investment process.

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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.