Cancom SE (ETR:COK) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Last week, you might have seen that Cancom SE (ETR:COK) released its quarterly result to the market. The early response was not positive, with shares down 4.0% to €22.65 in the past week. It was a credible result overall, with revenues of €393m and statutory earnings per share of €0.99 both in line with analyst estimates, showing that Cancom is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following last week's earnings report, Cancom's eight analysts are forecasting 2025 revenues to be €1.71b, approximately in line with the last 12 months. Per-share earnings are expected to leap 32% to €0.80. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.72b and earnings per share (EPS) of €0.89 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

View our latest analysis for Cancom

It might be a surprise to learn that the consensus price target was broadly unchanged at €27.69, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. The most optimistic Cancom analyst has a price target of €35.00 per share, while the most pessimistic values it at €23.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Cancom's revenue growth is expected to slow, with the forecast 0.1% annualised growth rate until the end of 2025 being well below the historical 8.1% 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 6.4% 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 Cancom.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Cancom. 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 €27.69, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Cancom analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Cancom is showing 2 warning signs 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.