wallstreet:online AG (ETR:WSO1) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

It's been a good week for wallstreet:online AG (ETR:WSO1) shareholders, because the company has just released its latest yearly results, and the shares gained 7.1% to €16.68. Revenues fell badly short of expectations, with sales of €19m, missing analyst estimates by 63%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for wallstreet:online

Taking into account the latest results, the most recent consensus for wallstreet:online from five analysts is for revenues of €63.7m in 2022 which, if met, would be a substantial 237% increase on its sales over the past 12 months. Earnings are expected to improve, with wallstreet:online forecast to report a statutory profit of €0.38 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €64.1m and earnings per share (EPS) of €0.40 in 2022. 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 €30.72, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 wallstreet:online, with the most bullish analyst valuing it at €38.60 and the most bearish at €24.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. It's clear from the latest estimates that wallstreet:online's rate of growth is expected to accelerate meaningfully, with the forecast 237% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 82% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that wallstreet:online is expected to grow much faster than its 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. 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 €30.72, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple wallstreet:online analysts - going out to 2024, and you can see them free on our platform here.

Even so, be aware that wallstreet:online is showing 1 warning sign in our investment analysis , you should know about...

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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.