CEZ, a. s. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

CEZ, a. s. (SEP:CEZ) shareholders are probably feeling a little disappointed, since its shares fell 4.1% to Kč835 in the week after its latest yearly results. It was not a great result overall. Although revenues beat expectations, hitting Kč337b, statutory earnings missed analyst forecasts by 16%, coming in at just Kč55.00 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.

Check out our latest analysis for CEZ a. s

Following the latest results, CEZ a. s' seven analysts are now forecasting revenues of Kč355.8b in 2024. This would be a satisfactory 5.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 5.1% to Kč57.83. Yet prior to the latest earnings, the analysts had been anticipated revenues of Kč338.5b and earnings per share (EPS) of Kč68.86 in 2024. While next year's revenue estimates increased, there was also a real cut to EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

There's been no major changes to the price target of Kč852, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. Currently, the most bullish analyst values CEZ a. s at Kč1,245 per share, while the most bearish prices it at Kč615. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that CEZ a. s' revenue growth is expected to slow, with the forecast 5.6% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 0.4% annually. So it's clear that despite the slowdown in growth, CEZ a. s is still expected to grow meaningfully 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 CEZ a. s. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CEZ a. s going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - CEZ a. s has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.

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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.