Analysts Have Made A Financial Statement On NFON AG's (ETR:NFN) Second-Quarter Report

The second-quarter results for NFON AG (ETR:NFN) were released last week, making it a good time to revisit its performance. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for NFON

Taking into account the latest results, the current consensus from NFON's three analysts is for revenues of €86.7m in 2024. This would reflect a huge 39% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 322% to €0.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of €87.0m and earnings per share (EPS) of €0.12 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of €9.65, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic NFON analyst has a price target of €17.00 per share, while the most pessimistic values it at €6.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that NFON's rate of growth is expected to accelerate meaningfully, with the forecast 92% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.5% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 1.8% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that NFON is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €9.65, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on NFON. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple NFON analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with NFON .

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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.