€2.35 - That's What Analysts Think elumeo SE (ETR:ELB) Is Worth After These Results

Shareholders will be ecstatic, with their stake up 32% over the past week following elumeo SE's (ETR:ELB) latest third-quarter results. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for elumeo

Taking into account the latest results, the current consensus from elumeo's two analysts is for revenues of €43.0m in 2021, which would reflect a modest 5.6% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching €0.29 per share. Before this earnings announcement, the analysts had been modelling revenues of €43.5m and losses of €0.27 per share in 2021. So it's pretty clear consensus is mixed on elumeo after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a per-share loss expectations.

Despite expectations of heavier losses next year,the analysts have lifted their price target 161% to €2.35, perhaps implying these losses are not expected to be recurring over the long term.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that elumeo is forecast to grow faster in the future than it has in the past, with revenues expected to grow 5.6%. If achieved, this would be a much better result than the 12% annual decline over the past five years. Compare this against analyst estimates for the wider industry, which suggest that (in aggregate) industry revenues are expected to grow 9.6% next year. Although elumeo's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at elumeo. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for elumeo you should be aware of.

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This article by Simply Wall St is general in nature. 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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