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

Investors in TeamViewer SE (ETR:TMV) had a good week, as its shares rose 8.4% to close at €14.53 following the release of its annual results. Revenues were €627m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €0.66 were also better than expected, beating analyst predictions by 13%. 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. 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 TeamViewer

Taking into account the latest results, the consensus forecast from TeamViewer's 13 analysts is for revenues of €672.6m in 2024. This reflects a reasonable 7.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €0.70, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €672.9m and earnings per share (EPS) of €0.69 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of €17.20, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. 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. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. We would highlight that TeamViewer's revenue growth is expected to slow, with the forecast 7.3% annualised growth rate until the end of 2024 being well below the historical 14% 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 9.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that TeamViewer is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for TeamViewer going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for TeamViewer that 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.