Analysts Have Made A Financial Statement On Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság's (BUSE:MTELEKOM) Second-Quarter Report

Explore Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság's Fair Values from the Community and select yours

Investors in Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (BUSE:MTELEKOM) had a good week, as its shares rose 4.6% to close at Ft1,818 following the release of its second-quarter results. Results were roughly in line with estimates, with revenues of Ft241b and statutory earnings per share of Ft172. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság after the latest results.

This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality.

Taking into account the latest results, Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság's five analysts currently expect revenues in 2025 to be Ft1.00t, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 5.3% to Ft222. In the lead-up to this report, the analysts had been modelling revenues of Ft1.00t and earnings per share (EPS) of Ft220 in 2025. 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.

Check out our latest analysis for Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság

The analysts reconfirmed their price target of Ft1,703, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság at Ft2,100 per share, while the most bearish prices it at Ft377. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. It's pretty clear that there is an expectation that Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.6% growth on an annualised basis. This is compared to a historical growth rate of 9.1% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.0% per year. Even after the forecast slowdown in growth, it seems obvious that Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság is also expected to grow faster than the wider industry.

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. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság. Long-term earnings power is much more important than next year's profits. We have forecasts for Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság going out to 2027, 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 Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (1 is a bit unpleasant) you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.