€1.27 - That's What Analysts Think Vocento, S.A. (BME:VOC) Is Worth After These Results

Shareholders of Vocento, S.A. (BME:VOC) will be pleased this week, given that the stock price is up 11% to €0.59 following its latest full-year results. It was an okay result overall, with revenues coming in at €359m, roughly what the analysts had been expecting. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Vocento

Following the latest results, Vocento's three analysts are now forecasting revenues of €375.6m in 2024. This would be an okay 4.7% improvement in revenue compared to the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €382.0m and earnings per share (EPS) of €0.038 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

The average price target rose 5.6% to €1.27, with the analysts clearly having become more optimistic about Vocento'sprospects following these results. 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. There are some variant perceptions on Vocento, with the most bullish analyst valuing it at €1.50 and the most bearish at €1.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Vocento's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.7% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 2.8% 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 5.2% per year. So while Vocento's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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.

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 4 warning signs for Vocento 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.