CEZ, a. s. Just Beat Revenue Estimates By 5.6%

As you might know, CEZ, a. s. (SEP:CEZ) recently reported its half-year numbers. Results overall were respectable, with statutory earnings of Kč55.00 per share roughly in line with what the analysts had forecast. Revenues of Kč162b came in 5.6% ahead of analyst predictions. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on CEZ a. s after the latest results.

See our latest analysis for CEZ a. s

Taking into account the latest results, the most recent consensus for CEZ a. s from nine analysts is for revenues of Kč375.4b in 2024. If met, it would imply a decent 14% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to climb 15% to Kč60.60. Yet prior to the latest earnings, the analysts had been anticipated revenues of Kč347.6b and earnings per share (EPS) of Kč60.30 in 2024. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a modest lift to to revenue forecasts.

Even though revenue forecasts increased, there was no change to the consensus price target of Kč849, suggesting the analysts are focused on earnings as the driver of value creation. 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 CEZ a. s, with the most bullish analyst valuing it at Kč1,034 and the most bearish at Kč650 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.

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. It's clear from the latest estimates that CEZ a. s' rate of growth is expected to accelerate meaningfully, with the forecast 29% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that CEZ a. s is expected to grow much faster than its 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at Kč849, with the latest estimates not enough to have an impact on their price targets.

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 CEZ a. s going out to 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for CEZ a. s you should be aware of, and 1 of them can't be ignored.

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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.