Cellnex Telecom, S.A. (BME:CLNX) Just Released Its Half-Year Earnings: Here's What Analysts Think

Shareholders might have noticed that Cellnex Telecom, S.A. (BME:CLNX) filed its half-yearly result this time last week. The early response was not positive, with shares down 2.4% to €31.39 in the past week. The result was fairly weak overall, with revenues of €1.9b being 9.8% less than what the analysts had been modelling. 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.

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Taking into account the latest results, the consensus forecast from Cellnex Telecom's 22 analysts is for revenues of €4.23b in 2025. This reflects a credible 3.2% improvement in revenue compared to the last 12 months. The company is forecast to report a statutory loss of €0.17 in 2025, a sharp decline from a profit over the last year. Yet prior to the latest earnings, the analysts had been forecasting revenues of €4.23b and losses of €0.12 per share in 2025. While this year's revenue estimates held steady, there was also a massive increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.

Check out our latest analysis for Cellnex Telecom

As a result, there was no major change to the consensus price target of €41.55, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. 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. The most optimistic Cellnex Telecom analyst has a price target of €51.80 per share, while the most pessimistic values it at €24.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. It's pretty clear that there is an expectation that Cellnex Telecom's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 6.5% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.2% annually. Even after the forecast slowdown in growth, it seems obvious that Cellnex Telecom is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Cellnex Telecom. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Cellnex Telecom analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Cellnex Telecom that 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.