Analysts Have Made A Financial Statement On Fnac Darty SA's (EPA:FNAC) Yearly Report

It's been a good week for Fnac Darty SA (EPA:FNAC) shareholders, because the company has just released its latest annual results, and the shares gained 9.4% to €51.05. It was an okay result overall, with revenues coming in at €7.5b, roughly what the analysts had been expecting. 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.

See our latest analysis for Fnac Darty

Taking into account the latest results, Fnac Darty's seven analysts currently expect revenues in 2021 to be €7.59b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 50% to €4.07. Before this earnings report, the analysts had been forecasting revenues of €7.57b and earnings per share (EPS) of €4.25 in 2021. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at €59.13, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Fnac Darty analyst has a price target of €68.00 per share, while the most pessimistic values it at €48.00. 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.

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. We would highlight that Fnac Darty's revenue growth is expected to slow, with forecast 1.4% increase next year well below the historical 9.9%p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.3% next year. Factoring in the forecast slowdown in growth, it seems obvious that Fnac Darty is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Fnac Darty. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Fnac Darty's revenues are 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Fnac Darty going out to 2023, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Fnac Darty that we have uncovered.

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