Euronext N.V. (EPA:ENX) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

The annual results for Euronext N.V. (EPA:ENX) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of €1.5b and statutory earnings per share of €4.83. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Euronext

After the latest results, the 16 analysts covering Euronext are now predicting revenues of €1.58b in 2024. If met, this would reflect a reasonable 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 17% to €5.67. Before this earnings report, the analysts had been forecasting revenues of €1.57b and earnings per share (EPS) of €5.31 in 2024. So the consensus seems to have become somewhat more optimistic on Euronext's earnings potential following these results.

The consensus price target was unchanged at €92.05, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Euronext analyst has a price target of €108 per share, while the most pessimistic values it at €73.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Euronext's revenue growth is expected to slow, with the forecast 7.2% annualised growth rate until the end of 2024 being well below the historical 20% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.5% per year. Even after the forecast slowdown in growth, it seems obvious that Euronext is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Euronext following these results. 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 €92.05, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Euronext going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Euronext .

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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.