Focus Home Interactive Société anonyme Just Beat Revenue Estimates By 28%

Focus Home Interactive Société anonyme (EPA:ALFOC) shareholders are probably feeling a little disappointed, since its shares fell 5.7% to €45.00 in the week after its latest third-quarter results. Revenue of €37m beat expectations by an impressive 28%, while statutory earnings per share (EPS) were €2.38, in line with estimates. 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.

See our latest analysis for Focus Home Interactive Société anonyme

Taking into account the latest results, the most recent consensus for Focus Home Interactive Société anonyme from six analysts is for revenues of €169.7m in 2023 which, if met, would be a notable 11% increase on its sales over the past 12 months. Per-share earnings are expected to jump 87% to €2.91. Before this earnings report, the analysts had been forecasting revenues of €171.6m and earnings per share (EPS) of €2.99 in 2023. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at €58.82, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Focus Home Interactive Société anonyme, with the most bullish analyst valuing it at €88.00 and the most bearish at €39.90 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Focus Home Interactive Société anonyme's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 8.9% growth on an annualised basis. This is compared to a historical growth rate of 17% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% per year. Even after the forecast slowdown in growth, it seems obvious that Focus Home Interactive Société anonyme is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Focus Home Interactive Société anonyme. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Focus Home Interactive Société anonyme analysts - going out to 2024, and you can see them free on our platform here.

You still need to take note of risks, for example - Focus Home Interactive Société anonyme has 1 warning sign we think 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.