€0.97: That's What Analysts Think Vocento, S.A. (BME:VOC) Is Worth After Its Latest Results

Vocento, S.A. (BME:VOC) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Vocento reported in line with analyst predictions, delivering revenues of €81m and statutory earnings per share of €0.033, 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Vocento

Following last week's earnings report, Vocento's three analysts are forecasting 2024 revenues to be €363.4m, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €375.1m and earnings per share (EPS) of €0.036 in 2024. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

Intriguingly,the analysts have cut their price target 24% to €0.97 showing a clear decline in sentiment around Vocento's valuation. 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 Vocento, with the most bullish analyst valuing it at €1.30 and the most bearish at €0.75 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. For example, we noticed that Vocento's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.2% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.1% a year 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 2.6% per year. So it looks like Vocento is expected to grow at about the same rate as the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Vocento next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

At least one of Vocento's three analysts has provided estimates out to 2026, which can be seen for free on our platform here.

Before you take the next step you should know about the 3 warning signs for Vocento (1 is a bit concerning!) that we have uncovered.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com