The Mediaset España Comunicación, S.A. (BME:TL5) Interim Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that Mediaset España Comunicación, S.A. (BME:TL5) filed its half-yearly result this time last week. The early response was not positive, with shares down 2.6% to €5.02 in the past week. It was a credible result overall, with revenues of €424m and statutory earnings per share of €0.57 both in line with analyst estimates, showing that Mediaset España Comunicación is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Mediaset España Comunicación

After the latest results, the 16 analysts covering Mediaset España Comunicación are now predicting revenues of €897.0m in 2021. If met, this would reflect an okay 2.6% improvement in sales compared to the last 12 months. Per-share earnings are expected to ascend 15% to €0.61. In the lead-up to this report, the analysts had been modelling revenues of €900.8m and earnings per share (EPS) of €0.62 in 2021. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €6.34. 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 Mediaset España Comunicación, with the most bullish analyst valuing it at €9.00 and the most bearish at €1.70 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. One thing stands out from these estimates, which is that Mediaset España Comunicación is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.2% annualised growth until the end of 2021. If achieved, this would be a much better result than the 3.9% 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 6.7% per year. Although Mediaset España Comunicación's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Mediaset España Comunicación's revenues are 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.

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 Mediaset España Comunicación going out to 2023, and you can see them free on our platform here..

You can also see our analysis of Mediaset España Comunicación's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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This article by Simply Wall St is general in nature. 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.
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