HomeToGo SE (ETR:HTG) Just Released Its First-Quarter Earnings: Here's What Analysts Think

It's been a good week for HomeToGo SE (ETR:HTG) shareholders, because the company has just released its latest first-quarter results, and the shares gained 5.4% to €1.86. Revenue greatly exceeded expectations at €36m, some 33% ahead of analyst forecasts. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for HomeToGo

Taking into account the latest results, the consensus forecast from HomeToGo's six analysts is for revenues of €223.6m in 2024. This reflects a decent 20% improvement in revenue compared to the last 12 months. Losses are supposed to decline, shrinking 11% from last year to €0.17. Before this latest report, the consensus had been expecting revenues of €225.6m and €0.17 per share in losses.

The consensus price target was unchanged at €4.76, suggesting that the business - losses and all - is executing in line with estimates. 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 HomeToGo at €6.80 per share, while the most bearish prices it at €3.70. 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. We can infer from the latest estimates that forecasts expect a continuation of HomeToGo'shistorical trends, as the 27% annualised revenue growth to the end of 2024 is roughly in line with the 27% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.5% per year. So it's pretty clear that HomeToGo is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €4.76, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on HomeToGo. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple HomeToGo analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with HomeToGo .

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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.