Here's What Analysts Are Forecasting For Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (BUSE:MTELEKOM) After Its Second-Quarter Results

Last week, you might have seen that Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság (BUSE:MTELEKOM) released its second-quarter result to the market. The early response was not positive, with shares down 4.0% to Ft1,050 in the past week. Results overall were respectable, with statutory earnings of Ft83.73 per share roughly in line with what the analysts had forecast. Revenues of Ft241b came in 2.1% ahead of analyst predictions. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság

Taking into account the latest results, the most recent consensus for Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság from four analysts is for revenues of Ft937.1b in 2024. If met, it would imply a modest 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to ascend 13% to Ft150. In the lead-up to this report, the analysts had been modelling revenues of Ft931.2b and earnings per share (EPS) of Ft124 in 2024. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

There's been no major changes to the consensus price target of Ft1,015, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság at Ft1,400 per share, while the most bearish prices it at Ft377. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 6.0% growth on an annualised basis. That is in line with its 6.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 1.9% per year. So it's pretty clear that Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság following these results. 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. The consensus price target held steady at Ft1,015, with the latest estimates not enough to have an impact on their price targets.

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 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Magyar Telekom Távközlési Nyilvánosan Müködö Részvénytársaság that you need to be mindful 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.