The Vodafone Group Public Limited Company (LON:VOD) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Investors in Vodafone Group Public Limited Company (LON:VOD) had a good week, as its shares rose 9.4% to close at UK£0.95 following the release of its quarterly results. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Vodafone Group's 14 analysts is for revenues of €40.6b in 2026. This would reflect a credible 4.6% increase on its revenue over the past 12 months. Vodafone Group is also expected to turn profitable, with statutory earnings of €0.072 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €40.2b and earnings per share (EPS) of €0.081 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

See our latest analysis for Vodafone Group

It might be a surprise to learn that the consensus price target was broadly unchanged at UK£0.88, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Vodafone Group, with the most bullish analyst valuing it at UK£1.42 and the most bearish at UK£0.61 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Vodafone Group's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 9.4% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 4.6% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.1% per year. So it looks like Vodafone Group 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 Vodafone Group. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

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 Vodafone Group going out to 2028, 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 Vodafone Group that you should be aware of.

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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.