Ceconomy AG (ETR:CEC) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Investors in Ceconomy AG (ETR:CEC) had a good week, as its shares rose 3.7% to close at €2.88 following the release of its quarterly results. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Ceconomy

Taking into account the latest results, Ceconomy's seven analysts currently expect revenues in 2025 to be €22.8b, approximately in line with the last 12 months. Statutory earnings per share are predicted to jump 46% to €0.41. In the lead-up to this report, the analysts had been modelling revenues of €22.7b and earnings per share (EPS) of €0.40 in 2025. So the consensus seems to have become somewhat more optimistic on Ceconomy's earnings potential following these results.

The consensus price target was unchanged at €3.00, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Ceconomy analyst has a price target of €3.50 per share, while the most pessimistic values it at €2.60. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Ceconomy's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.8% growth on an annualised basis. This is compared to a historical growth rate of 1.3% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Ceconomy.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Ceconomy's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Ceconomy's revenue is expected to perform worse than the wider 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.

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 Ceconomy going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Ceconomy .

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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.