Stock Analysis

Nexus AG Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

XTRA:NXU
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Shareholders will be ecstatic, with their stake up 42% over the past week following Nexus AG's (ETR:NXU) latest quarterly results. Revenues of €63m fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of €0.46 an impressive 28% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Nexus

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XTRA:NXU Earnings and Revenue Growth November 8th 2024

Taking into account the latest results, the most recent consensus for Nexus from seven analysts is for revenues of €298.1m in 2025. If met, it would imply a solid 12% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 27% to €1.97. In the lead-up to this report, the analysts had been modelling revenues of €300.0m and earnings per share (EPS) of €2.04 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at €69.50, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Nexus, with the most bullish analyst valuing it at €70.00 and the most bearish at €67.50 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. It's pretty clear that there is an expectation that Nexus' revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 9.3% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this to the 5 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.2% per year. So it's pretty clear that, while Nexus' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to 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. At Simply Wall St, we have a full range of analyst estimates for Nexus going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Nexus that you need to be mindful of.

Valuation is complex, but we're here to simplify it.

Discover if Nexus might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.

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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.