Earnings Update: Nexus AG (ETR:NXU) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

As you might know, Nexus AG (ETR:NXU) recently reported its annual numbers. Nexus beat revenue expectations by 3.6%, at €245m. Statutory earnings per share (EPS) came in at €1.39, some 4.2% short of analyst estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nexus after the latest results.

View our latest analysis for Nexus

Taking into account the latest results, the current consensus from Nexus' seven analysts is for revenues of €271.4m in 2024. This would reflect a decent 11% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 23% to €1.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of €265.2m and earnings per share (EPS) of €1.79 in 2024. So it's pretty clear consensus is mixed on Nexus after the latest results; whilethe analysts lifted revenue numbers, they also administered a minor downgrade to per-share earnings expectations.

The consensus price target was unchanged at €66.50, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Nexus at €70.00 per share, while the most bearish prices it at €62.00. This is a very narrow spread of estimates, implying either that Nexus is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 11% growth on an annualised basis. That is in line with its 11% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.1% per year. It's clear that while Nexus' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Nexus will grow in line with the overall 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 forecasts for Nexus going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.