Proximus PLC Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Proximus PLC (EBR:PROX) shareholders are probably feeling a little disappointed, since its shares fell 8.4% to €7.43 in the week after its latest quarterly results. It looks like a credible result overall - although revenues of €1.6b were what the analysts expected, Proximus surprised by delivering a (statutory) profit of €0.54 per share, an impressive 99% above what was forecast. 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.

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After the latest results, the twelve analysts covering Proximus are now predicting revenues of €6.65b in 2025. If met, this would reflect a modest 3.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plummet 35% to €1.15 in the same period. Before this earnings report, the analysts had been forecasting revenues of €6.65b and earnings per share (EPS) of €1.18 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for Proximus

It might be a surprise to learn that the consensus price target was broadly unchanged at €8.40, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. There are some variant perceptions on Proximus, with the most bullish analyst valuing it at €12.50 and the most bearish at €6.50 per share. 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.

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. It's clear from the latest estimates that Proximus' rate of growth is expected to accelerate meaningfully, with the forecast 6.1% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.7% 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 2.2% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Proximus to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Proximus. Happily, there were no major changes to revenue forecasts, with the business still 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Proximus going out to 2027, 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 makes us a bit uncomfortable!) 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.