CTS Eventim AG & Co. KGaA Just Missed EPS By 45%: Here's What Analysts Think Will Happen Next

CTS Eventim AG & Co. KGaA (ETR:EVD) just released its latest quarterly report and things are not looking great. Unfortunately, CTS Eventim KGaA delivered a serious earnings miss. Revenues of €796m were 10% below expectations, and statutory earnings per share of €0.45 missed estimates by 45%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, CTS Eventim KGaA's eleven analysts are now forecasting revenues of €2.98b in 2025. This would be a reasonable 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 9.8% to €3.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.06b and earnings per share (EPS) of €3.50 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Check out our latest analysis for CTS Eventim KGaA

The consensus price target fell 6.4% to €108, with the weaker earnings outlook clearly leading valuation estimates. 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. There are some variant perceptions on CTS Eventim KGaA, with the most bullish analyst valuing it at €127 and the most bearish at €84.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that CTS Eventim KGaA's revenue growth is expected to slow, with the forecast 5.4% annualised growth rate until the end of 2025 being well below the historical 40% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.0% 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 concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CTS Eventim KGaA. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on CTS Eventim KGaA. Long-term earnings power is much more important than next year's profits. We have forecasts for CTS Eventim KGaA going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with CTS Eventim KGaA , and understanding this should be part of your investment process.

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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.