Revenue Beat: ZEAL Network SE Beat Analyst Estimates By 6.9%

Investors in ZEAL Network SE (ETR:TIMA) had a good week, as its shares rose 5.4% to close at €43.00 following the release of its second-quarter results. Results overall were respectable, with statutory earnings of €0.59 per share roughly in line with what the analysts had forecast. Revenues of €41m came in 6.9% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for ZEAL Network

Taking into account the latest results, the most recent consensus for ZEAL Network from five analysts is for revenues of €164.0m in 2024. If met, it would imply a meaningful 8.8% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dive 24% to €1.65 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €161.9m and earnings per share (EPS) of €1.34 in 2024. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the great increase in earnings per share expectations following these results.

There's been no major changes to the consensus price target of €53.67, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on ZEAL Network, with the most bullish analyst valuing it at €64.00 and the most bearish at €45.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting ZEAL Network's growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ZEAL Network is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ZEAL Network's earnings potential 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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for ZEAL Network going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for ZEAL Network (1 doesn't sit too well with us!) that you need to take into consideration.

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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.