Here's What Analysts Are Forecasting For Vivendi SE (EPA:VIV) After Its Interim Results

The interim results for Vivendi SE (EPA:VIV) were released last week, making it a good time to revisit its performance. The results were positive, with revenue coming in at €8.2b, beating analyst expectations by 4.6%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Vivendi after the latest results.

Check out our latest analysis for Vivendi

Taking into account the latest results, the consensus forecast from Vivendi's 18 analysts is for revenues of €17.3b in 2021, which would reflect a satisfactory 3.3% improvement in sales compared to the last 12 months. Statutory per share are forecast to be €1.08, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €17.1b and earnings per share (EPS) of €1.04 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €33.92, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Vivendi, with the most bullish analyst valuing it at €44.00 and the most bearish at €27.50 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vivendi's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Vivendi's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 6.7% growth on an annualised basis. This is compared to a historical growth rate of 9.8% over the past five years. Compare this to the 14 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 6.1% per year. So it's pretty clear that, while Vivendi's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vivendi's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €33.92, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Vivendi. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Vivendi going out to 2023, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Vivendi that you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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