Results: Sportradar Group AG Beat Earnings Expectations And Analysts Now Have New Forecasts

As you might know, Sportradar Group AG (NASDAQ:SRAD) just kicked off its latest third-quarter results with some very strong numbers. The company beat forecasts, with revenue of €255m, some 7.2% above estimates, and statutory earnings per share (EPS) coming in at €0.11, 238% ahead of expectations. 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.

Check out our latest analysis for Sportradar Group

Taking into account the latest results, the most recent consensus for Sportradar Group from twelve analysts is for revenues of €1.23b in 2025. If met, it would imply a notable 17% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 15% to €0.23. In the lead-up to this report, the analysts had been modelling revenues of €1.22b and earnings per share (EPS) of €0.23 in 2025. 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.6% to US$16.07. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Sportradar Group, with the most bullish analyst valuing it at US$19.87 and the most bearish at US$9.78 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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 Sportradar Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 14% growth on an annualised basis. This is compared to a historical growth rate of 22% 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) 9.7% per year. Even after the forecast slowdown in growth, it seems obvious that Sportradar Group is also expected to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have forecasts for Sportradar Group going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Sportradar Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.