Stock Analysis

Medios AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

XTRA:ILM1
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The annual results for Medios AG (ETR:ILM1) were released last week, making it a good time to revisit its performance. It looks like a pretty bad result, all things considered. Although revenues of €1.9b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 47% to hit €0.51 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

earnings-and-revenue-growth
XTRA:ILM1 Earnings and Revenue Growth March 28th 2025

After the latest results, the four analysts covering Medios are now predicting revenues of €1.98b in 2025. If met, this would reflect an okay 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 133% to €1.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.00b and earnings per share (EPS) of €1.32 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

See our latest analysis for Medios

It might be a surprise to learn that the consensus price target was broadly unchanged at €25.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Medios at €32.00 per share, while the most bearish prices it at €18.00. 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.

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 Medios' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 5.1% growth on an annualised basis. This is compared to a historical growth rate of 24% 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 4.0% annually. Even after the forecast slowdown in growth, it seems obvious that Medios is also expected to grow faster than the wider industry.

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The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Medios. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Medios going out to 2027, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Medios you should know about.

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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.