q.beyond AG (ETR:QBY) Just Reported, And Analysts Assigned A €1.07 Price Target

Last week, you might have seen that q.beyond AG (ETR:QBY) released its yearly result to the market. The early response was not positive, with shares down 2.8% to €0.62 in the past week. It was an okay result overall, with revenues coming in at €189m, roughly what the analysts had been expecting. 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.

See our latest analysis for q.beyond

Taking into account the latest results, the current consensus from q.beyond's dual analysts is for revenues of €198.8m in 2024. This would reflect an okay 5.0% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 62% to €0.05. Before this earnings announcement, the analysts had been modelling revenues of €194.5m and losses of €0.04 per share in 2024. While this year's revenue estimates increased, there was also a considerable increase to loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Spiting the revenue upgrading, the average price target fell 14% to €1.07, clearly signalling that higher forecast losses are a valuation concern.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One thing stands out from these estimates, which is that q.beyond is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.0% annualised growth until the end of 2024. If achieved, this would be a much better result than the 15% annual decline 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 revenue grow 8.9% per year. So although q.beyond's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 2026, which can be seen for free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with q.beyond , and understanding these should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.