audius SE (FRA:3IT) Reported Earnings Last Week And Analysts Are Already Upgrading Their Estimates

Last week, you might have seen that audius SE (FRA:3IT) released its annual result to the market. The early response was not positive, with shares down 3.6% to €16.10 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 4.3%to hit €59m. 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.

View our latest analysis for audius

Taking into account the latest results, the most recent consensus for audius from dual analysts is for revenues of €69.0m in 2022 which, if met, would be a notable 18% increase on its sales over the past 12 months. Statutory earnings per share are predicted to shoot up 20% to €0.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of €63.8m and earnings per share (EPS) of €0.55 in 2022. So it seems there's been a definite increase in optimism about audius' future following the latest results, with a massive increase in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analysts have increased their price target for audius 17% to €21.50on the back of these upgrades.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of audius'historical trends, as the 18% annualised revenue growth to the end of 2022 is roughly in line with the 19% annual revenue growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. So although audius is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around audius' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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 in mind, we wouldn't be too quick to come to a conclusion on audius. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

You still need to take note of risks, for example - audius 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.