Earnings Beat: init innovation in traffic systems SE Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

init innovation in traffic systems SE (ETR:IXX) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasts think of the company following this report. Revenues were €181m, approximately in line with whatthe analyst expected, although statutory earnings per share (EPS) crushed expectations, coming in at €1.50, an impressive 26% ahead of estimates. The analyst 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for init innovation in traffic systems

Following last week's earnings report, init innovation in traffic systems' sole analyst are forecasting 2021 revenues to be €183.1m, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 6.6% to €1.40 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of €189.1m and earnings per share (EPS) of €1.25 in 2021. While revenue forecasts have been revised downwards, the analyst looks to have become more optimistic on the company's cost base, given the solid gain to to the earnings per share numbers.

The consensus has made no major changes to the price target of €50.00, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the init innovation in traffic systems' past performance and to peers in the same industry. We would highlight that init innovation in traffic systems' revenue growth is expected to slow, with the forecast 1.3% annualised growth rate until the end of 2021 being well below the historical 11% 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 6.1% 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 init innovation in traffic systems.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards init innovation in traffic systems following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. 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. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for init innovation in traffic systems that we have uncovered.

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