Earnings Update: Infotel SA (EPA:INF) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

Infotel SA (EPA:INF) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was an okay report, and revenues came in at €235m, approximately in line with analyst estimates leading up to the results announcement. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Infotel after the latest results.

View our latest analysis for Infotel

Taking into account the latest results, the current consensus from Infotel's three analysts is for revenues of €246.0m in 2021, which would reflect a satisfactory 4.6% increase on its sales over the past 12 months. Statutory earnings per share are predicted to climb 15% to €2.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of €246.1m and earnings per share (EPS) of €2.22 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of €48.10, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Infotel analyst has a price target of €50.00 per share, while the most pessimistic values it at €45.30. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Infotel is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Infotel's revenue growth will slow down substantially, with revenues to the end of 2021 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 7.1% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Infotel is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at €48.10, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Infotel going out to 2023, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for Infotel 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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