Métropole Télévision S.A. (EPA:MMT) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?

Métropole Télévision S.A. (EPA:MMT) shareholders are probably feeling a little disappointed, since its shares fell 5.4% to €12.30 in the week after its latest interim results. It was a credible result overall, with revenues of €657m and statutory earnings per share of €1.85 both in line with analyst estimates, showing that Métropole Télévision is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Métropole Télévision

Taking into account the latest results, Métropole Télévision's five analysts currently expect revenues in 2024 to be €1.35b, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €1.33b and earnings per share (EPS) of €1.64 in 2024. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of €15.13. 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 Métropole Télévision analyst has a price target of €17.00 per share, while the most pessimistic values it at €13.50. This is a very narrow spread of estimates, implying either that Métropole Télévision is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 0.9% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 1.2% decline in revenue until the end of 2024. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 5.8% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Métropole Télévision to suffer worse than the wider industry.

The Bottom Line

The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Métropole Télévision's revenue is expected to perform worse 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.

At least one of Métropole Télévision's five analysts has provided estimates out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Métropole Télévision (1 is potentially serious!) that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com