Results: GFT Technologies SE Exceeded Expectations And The Consensus Has Updated Its Estimates

GFT Technologies SE (ETR:GFT) shareholders are probably feeling a little disappointed, since its shares fell 8.9% to €21.10 in the week after its latest second-quarter results. The result was positive overall - although revenues of €217m were in line with what the analysts predicted, GFT Technologies surprised by delivering a statutory profit of €0.41 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on GFT Technologies after the latest results.

View our latest analysis for GFT Technologies

After the latest results, the five analysts covering GFT Technologies are now predicting revenues of €886.5m in 2024. If met, this would reflect an okay 3.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €1.83, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €911.7m and earnings per share (EPS) of €1.92 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of €44.80, suggesting the downgrades are not expected to have a long-term impact on GFT Technologies' valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values GFT Technologies at €52.00 per share, while the most bearish prices it at €33.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GFT Technologies' past performance and to peers in the same industry. We would highlight that GFT Technologies' revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2024 being well below the historical 20% 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) 8.2% annually. So it's pretty clear that, while GFT Technologies' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple GFT Technologies analysts - going out to 2026, and you can see them free on our platform here.

Even so, be aware that GFT Technologies 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.