Koninklijke KPN N.V. Just Beat EPS By 16%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Koninklijke KPN N.V. (AMS:KPN) filed its full-year result this time last week. The early response was not positive, with shares down 4.6% to €2.73 in the past week. It looks like a credible result overall - although revenues of €5.3b were in line with what the analysts predicted, Koninklijke KPN surprised by delivering a statutory profit of €0.13 per share, a notable 16% above 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Koninklijke KPN

Taking into account the latest results, Koninklijke KPN's 19 analysts currently expect revenues in 2021 to be €5.23b, approximately in line with the last 12 months. Statutory per share are forecast to be €0.13, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €5.23b and earnings per share (EPS) of €0.13 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of €3.00, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Koninklijke KPN, with the most bullish analyst valuing it at €4.00 and the most bearish at €2.30 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing that stands out from these estimates is that shrinking revenues are expected to moderate from the historical decline of 6.2% per annum over the past five years.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Koninklijke KPN's revenues are expected to perform worse than the wider industry. The consensus price target held steady at €3.00, 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 Koninklijke KPN. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Koninklijke KPN analysts - going out to 2025, 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 2 warning signs for Koninklijke KPN (1 doesn't sit too well with us!) that you need to be mindful of.

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