The Grupa Kety S.A. (WSE:KTY) First-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a good week for Grupa Kety S.A. (WSE:KTY) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.4% to zł853. Results look mixed - while revenue fell marginally short of analyst estimates at zł1.4b, statutory earnings were in line with expectations, at zł57.59 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the current consensus from Grupa Kety's six analysts is for revenues of zł6.07b in 2025. This would reflect a notable 15% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 13% to zł61.42. Before this earnings report, the analysts had been forecasting revenues of zł6.07b and earnings per share (EPS) of zł63.36 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

See our latest analysis for Grupa Kety

It might be a surprise to learn that the consensus price target was broadly unchanged at zł853, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. The most optimistic Grupa Kety analyst has a price target of zł920 per share, while the most pessimistic values it at zł794. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Grupa Kety is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting Grupa Kety's growth to accelerate, with the forecast 21% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Grupa Kety is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Grupa Kety. 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 zł853, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Grupa Kety going out to 2027, 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 Grupa Kety 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.