Analysts Are Updating Their TeamViewer SE (ETR:TMV) Estimates After Its First-Quarter Results

Shareholders might have noticed that TeamViewer SE (ETR:TMV) filed its quarterly result this time last week. The early response was not positive, with shares down 6.4% to €11.64 in the past week. TeamViewer reported in line with analyst predictions, delivering revenues of €162m and statutory earnings per share of €0.66, suggesting the business is executing well and in line with its plan. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for TeamViewer

Following the latest results, TeamViewer's 14 analysts are now forecasting revenues of €672.1m in 2024. This would be a reasonable 5.5% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.4% to €0.72. In the lead-up to this report, the analysts had been modelling revenues of €670.8m and earnings per share (EPS) of €0.70 in 2024. So the consensus seems to have become somewhat more optimistic on TeamViewer's earnings potential following these results.

The consensus price target was unchanged at €16.72, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on TeamViewer, with the most bullish analyst valuing it at €21.00 and the most bearish at €13.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 pretty clear that there is an expectation that TeamViewer's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.8% 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 TeamViewer.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TeamViewer following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TeamViewer's revenue is expected to perform worse than the wider industry. 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 in mind, we wouldn't be too quick to come to a conclusion on TeamViewer. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple TeamViewer analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - TeamViewer has 1 warning sign we think you should be aware of.

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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.