USU Software AG Just Recorded A 6.1% EPS Beat: Here's What Analysts Are Forecasting Next

Investors in USU Software AG (ETR:OSP2) had a good week, as its shares rose 4.8% to close at €28.40 following the release of its yearly results. The result was positive overall - although revenues of €107m were in line with what the analysts predicted, USU Software surprised by delivering a statutory profit of €0.52 per share, modestly greater than expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on USU Software after the latest results.

View our latest analysis for USU Software

Following the latest results, USU Software's twin analysts are now forecasting revenues of €116.4m in 2021. This would be a notable 8.4% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to increase 9.4% to €0.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of €117.9m and earnings per share (EPS) of €0.78 in 2021. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 5.7% to €27.75, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2021 brings more of the same, according to the analysts, with revenue forecast to display 8.4% growth on an annualised basis. That is in line with its 9.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.1% per year. So it's pretty clear that USU Software is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for USU Software. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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.

You can also see our analysis of USU Software's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. 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.
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