Getlink SE (EPA:GET) Half-Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

The interim results for Getlink SE (EPA:GET) were released last week, making it a good time to revisit its performance. It was a pretty good result, with revenues of €577m, and Getlink came in a solid 11% ahead of expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Getlink after the latest results.

View our latest analysis for Getlink

Taking into account the latest results, the most recent consensus for Getlink from twelve analysts is for revenues of €1.23b in 2022 which, if met, would be a huge 20% increase on its sales over the past 12 months. Getlink is also expected to turn profitable, with statutory earnings of €0.29 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.18b and earnings per share (EPS) of €0.35 in 2022. While next year's revenue estimates increased, there was also a substantial drop in EPS expectations, suggesting the consensus has a bit of a mixed view of these results.

The consensus price target was unchanged at €17.00, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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. There are some variant perceptions on Getlink, with the most bullish analyst valuing it at €20.50 and the most bearish at €8.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. One thing stands out from these estimates, which is that Getlink is forecast to grow faster in the future than it has in the past, with revenues expected to display 44% annualised growth until the end of 2022. If achieved, this would be a much better result than the 5.4% annual decline 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 10% annually. So it looks like Getlink is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Getlink. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Getlink analysts - going out to 2024, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Getlink that we have uncovered.

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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.