Stock Analysis

CENIT Aktiengesellschaft Just Missed EPS By 57%: Here's What Analysts Think Will Happen Next

Published
XTRA:CSH

CENIT Aktiengesellschaft (ETR:CSH) shareholders are probably feeling a little disappointed, since its shares fell 3.7% to €9.15 in the week after its latest third-quarter results. Results overall were not great, with earnings of €0.098 per share falling drastically short of analyst expectations. Meanwhile revenues hit €52m and were slightly better than forecasts. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for CENIT

XTRA:CSH Earnings and Revenue Growth November 8th 2024

After the latest results, the five analysts covering CENIT are now predicting revenues of €225.7m in 2025. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 121% to €0.80. In the lead-up to this report, the analysts had been modelling revenues of €227.7m and earnings per share (EPS) of €1.06 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target fell 13% to €19.24, with the analysts clearly linking lower forecast earnings to the performance of the stock price. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic CENIT analyst has a price target of €22.00 per share, while the most pessimistic values it at €17.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting CENIT is an easy business to forecast or the the analysts are all using similar assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that CENIT's rate of growth is expected to accelerate meaningfully, with the forecast 8.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.6% p.a. 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 11% per year. So it's clear that despite the acceleration in growth, CENIT is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CENIT. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that CENIT's revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of CENIT's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for CENIT going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with CENIT (including 1 which is significant) .

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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.