Earnings Update: Ströer SE & Co. KGaA (ETR:SAX) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

It's been a pretty great week for Ströer SE & Co. KGaA (ETR:SAX) shareholders, with its shares surging 13% to €46.50 in the week since its latest quarterly results. It was a credible result overall, with revenues of €425m and statutory earnings per share of €2.14 both in line with analyst estimates, showing that Ströer SE KGaA is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Ströer SE KGaA

Taking into account the latest results, the most recent consensus for Ströer SE KGaA from ten analysts is for revenues of €1.81b in 2022 which, if met, would be a reasonable 3.5% increase on its sales over the past 12 months. Statutory earnings per share are expected to decline 12% to €2.64 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €1.81b and earnings per share (EPS) of €2.58 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of €62.32, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Ströer SE KGaA at €80.00 per share, while the most bearish prices it at €40.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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 analysts are definitely expecting Ströer SE KGaA's growth to accelerate, with the forecast 7.1% annualised growth to the end of 2022 ranking favourably alongside historical growth of 4.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ströer SE KGaA is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Ströer SE KGaA following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at €62.32, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Ströer SE KGaA going out to 2024, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 2 warning signs for Ströer SE KGaA 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.