Eutelsat Group (EPA:ETL) Just Reported And Analysts Have Been Cutting Their Estimates

Shareholders might have noticed that Eutelsat Group (EPA:ETL) filed its annual result this time last week. The early response was not positive, with shares down 5.1% to €4.21 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at €1.2b, statutory losses exploded to €0.74 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Eutelsat Group

Following the latest results, Eutelsat Group's eight analysts are now forecasting revenues of €1.25b in 2025. This would be a satisfactory 3.0% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 78% to €0.14. Before this latest report, the consensus had been expecting revenues of €1.38b and €0.14 per share in losses. So it's pretty clear consensus is more negative on Eutelsat Group after the new consensus numbers; while the analysts trimmed their revenue estimates, they also administered a pronounced increase to per-share loss expectations.

The consensus price target fell 11% to €3.72, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Eutelsat Group, with the most bullish analyst valuing it at €5.50 and the most bearish at €3.00 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. For example, we noticed that Eutelsat Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 3.0% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.1% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 3.8% annually for the foreseeable future. So although Eutelsat Group's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Eutelsat Group's future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Eutelsat Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Eutelsat Group analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Eutelsat Group is showing 2 warning signs in our investment analysis , you should know about...

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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.