Here's What Analysts Are Forecasting For Ceconomy AG (ETR:CEC) After Its Interim Results

As you might know, Ceconomy AG (ETR:CEC) recently reported its half-yearly numbers. Results were roughly in line with estimates, with revenues of €13b and statutory earnings per share of €0.16. 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.

Our free stock report includes 1 warning sign investors should be aware of before investing in Ceconomy. Read for free now.

Following last week's earnings report, Ceconomy's eight analysts are forecasting 2025 revenues to be €23.0b, approximately in line with the last 12 months. Earnings are expected to improve, with Ceconomy forecast to report a statutory profit of €0.36 per share. Before this earnings report, the analysts had been forecasting revenues of €23.3b and earnings per share (EPS) of €0.32 in 2025. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.

See our latest analysis for Ceconomy

There's been no major changes to the consensus price target of €3.56, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Ceconomy, with the most bullish analyst valuing it at €4.25 and the most bearish at €3.00 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.

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. We would highlight that Ceconomy's revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2025 being well below the historical 1.9% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.5% 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €3.56, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Ceconomy analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Ceconomy 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.