CTS Eventim AG & Co. KGaA Just Missed Earnings - But Analysts Have Updated Their Models

It's been a good week for CTS Eventim AG & Co. KGaA (ETR:EVD) shareholders, because the company has just released its latest half-yearly results, and the shares gained 5.3% to €84.20. It was not a great result overall. Although revenues beat expectations, hitting €1.2b, statutory earnings missed analyst forecasts by 18%, coming in at just €0.60 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for CTS Eventim KGaA

Taking into account the latest results, the consensus forecast from CTS Eventim KGaA's eleven analysts is for revenues of €2.61b in 2024. This reflects an okay 2.6% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €3.28, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €2.57b and earnings per share (EPS) of €3.10 in 2024. So the consensus seems to have become somewhat more optimistic on CTS Eventim KGaA's earnings potential following these results.

There's been no major changes to the consensus price target of €92.82, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's 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. The most optimistic CTS Eventim KGaA analyst has a price target of €107 per share, while the most pessimistic values it at €78.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await CTS Eventim KGaA shareholders.

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 CTS Eventim KGaA's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.2% growth on an annualised basis. This is compared to a historical growth rate of 26% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% annually. So it's pretty clear that, while CTS Eventim KGaA's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CTS Eventim KGaA's earnings potential next year. 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. We have forecasts for CTS Eventim KGaA going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for CTS Eventim KGaA 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.