Results: PVA TePla AG Exceeded Expectations And The Consensus Has Updated Its Estimates

PVA TePla AG (ETR:TPE) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of €74m, some 7.8% above estimates, and statutory earnings per share (EPS) coming in at €0.35, 35% ahead of 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for PVA TePla

Taking into account the latest results, the consensus forecast from PVA TePla's eleven analysts is for revenues of €282.7m in 2024. This reflects an okay 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.8% to €1.31. Before this earnings report, the analysts had been forecasting revenues of €283.8m and earnings per share (EPS) of €1.31 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of €26.00, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values PVA TePla at €35.26 per share, while the most bearish prices it at €17.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that PVA TePla's revenue growth is expected to slow, with the forecast 8.0% annualised growth rate until the end of 2024 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.6% annually. Factoring in the forecast slowdown in growth, it looks like PVA TePla is forecast to grow at about the same rate as the wider 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

With that in mind, we wouldn't be too quick to come to a conclusion on PVA TePla. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for PVA TePla going out to 2026, and you can see them free on our platform here..

You can also view our analysis of PVA TePla's balance sheet, and whether we think PVA TePla is carrying too much debt, for free on our platform here.

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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.