ZEAL Network SE Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

As you might know, ZEAL Network SE (ETR:TIMA) just kicked off its latest yearly results with some very strong numbers. ZEAL Network beat earnings, with revenues hitting €191m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Taking into account the latest results, the consensus forecast from ZEAL Network's five analysts is for revenues of €198.1m in 2025. This reflects an okay 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to plunge 47% to €1.48 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €195.8m and earnings per share (EPS) of €1.38 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for ZEAL Network

There's been no major changes to the consensus price target of €60.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 ZEAL Network, with the most bullish analyst valuing it at €69.00 and the most bearish at €57.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 pretty clear that there is an expectation that ZEAL Network's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.8% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ZEAL Network.

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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that ZEAL Network's revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on ZEAL Network. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for ZEAL Network going out to 2027, and you can see them free on our platform here..

Before you take the next step you should know about the 2 warning signs for ZEAL Network (1 is a bit unpleasant!) that we have uncovered.

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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.