HomeToGo SE (ETR:HTG) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for HomeToGo SE (ETR:HTG) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.5% to €3.05. It was an okay report, and revenues came in at €22m, approximately in line with analyst estimates leading up to the results announcement. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for HomeToGo

Taking into account the latest results, the consensus forecast from HomeToGo's four analysts is for revenues of €177.5m in 2023, which would reflect a decent 18% improvement in sales compared to the last 12 months. Yet prior to the latest earnings, the analysts had been forecasting revenues of €175.1m and losses of €0.37 per share in 2023. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate, suggesting that the market believes revenue is more important after these latest results.

There's been no real change to the consensus price target of €6.58, with HomeToGo seemingly executing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on HomeToGo, with the most bullish analyst valuing it at €7.00 and the most bearish at €6.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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 would highlight that HomeToGo's revenue growth is expected to slow, with the forecast 25% annualised growth rate until the end of 2023 being well below the historical 44% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 15% per year. Even after the forecast slowdown in growth, it seems obvious that HomeToGo is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €6.58, with the latest estimates not enough to have an impact on their price targets.

We have estimates for HomeToGo from its four analysts out to 2025, 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.