ZEAL Network SE Just Recorded A 6.5% Revenue Beat: Here's What Analysts Think

It's been a good week for ZEAL Network SE (ETR:TIMA) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.0% to €47.40. It was a workmanlike result, with revenues of €51m coming in 6.5% ahead of expectations, and statutory earnings per share of €2.70, in line with analyst appraisals. 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.

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Taking into account the latest results, ZEAL Network's five analysts currently expect revenues in 2025 to be €209.5m, approximately in line with the last 12 months. Statutory earnings per share are forecast to plunge 30% to €1.57 in the same period. Before this earnings report, the analysts had been forecasting revenues of €203.7m and earnings per share (EPS) of €1.54 in 2025. There doesn't appear to have been a major change in sentiment following the results, other than the modest lift to revenue estimates.

Check out our latest analysis for ZEAL Network

Even though revenue forecasts increased, there was no change to the consensus price target of €62.42, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic ZEAL Network analyst has a price target of €69.00 per share, while the most pessimistic values it at €60.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that ZEAL Network's revenue growth is expected to slow, with the forecast 2.4% annualised growth rate until the end of 2025 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that ZEAL Network is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple ZEAL Network analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for ZEAL Network that you should be aware of.

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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.