Analysts Are Updating Their GFT Technologies SE (ETR:GFT) Estimates After Its Annual Results
There's been a notable change in appetite for GFT Technologies SE (ETR:GFT) shares in the week since its full-year report, with the stock down 18% to €27.28. Results were roughly in line with estimates, with revenues of €818m and statutory earnings per share of €1.84. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for GFT Technologies
Following the latest results, GFT Technologies' five analysts are now forecasting revenues of €917.0m in 2024. This would be a decent 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 5.4% to €1.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of €922.7m and earnings per share (EPS) of €2.21 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
The consensus price target held steady at €46.40, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 GFT Technologies, with the most bullish analyst valuing it at €57.00 and the most bearish at €36.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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 GFT Technologies' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 12% growth on an annualised basis. This is compared to a historical growth rate of 16% 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) 8.9% per year. Even after the forecast slowdown in growth, it seems obvious that GFT Technologies is also expected to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for GFT Technologies. Happily, there were no major changes to revenue forecasts, with the business still 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 GFT Technologies. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for GFT Technologies going out to 2026, and you can see them free on our platform here..
Even so, be aware that GFT Technologies is showing 1 warning sign in our investment analysis , you should know about...
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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.
