Analysts Are Updating Their Fielmann Group AG (ETR:FIE) Estimates After Its Half-Yearly Results

Investors in Fielmann Group AG (ETR:FIE) had a good week, as its shares rose 5.1% to close at €44.15 following the release of its half-year results. It was a credible result overall, with revenues of €1.1b and statutory earnings per share of €1.52 both in line with analyst estimates, showing that Fielmann Group is executing in line with expectations. 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.

View our latest analysis for Fielmann Group

After the latest results, the seven analysts covering Fielmann Group are now predicting revenues of €2.26b in 2024. If met, this would reflect a meaningful 8.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 11% to €1.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.26b and earnings per share (EPS) of €1.87 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of €56.96, showing that the business is executing well and in line with expectations. 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 Fielmann Group at €66.00 per share, while the most bearish prices it at €45.70. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Fielmann Group's growth to accelerate, with the forecast 18% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.7% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Fielmann Group is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €56.96, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Fielmann Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Fielmann Group analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Fielmann Group that you need to take into consideration.

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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.