CompuGroup Medical SE & Co. KGaA Just Recorded A 19% EPS Beat: Here's What Analysts Are Forecasting Next
A week ago, CompuGroup Medical SE & Co. KGaA (ETR:COP) came out with a strong set of third-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.3% to hit €285m. CompuGroup Medical SE KGaA reported statutory earnings per share (EPS) €0.56, which was a notable 19% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for CompuGroup Medical SE KGaA
After the latest results, the eleven analysts covering CompuGroup Medical SE KGaA are now predicting revenues of €1.19b in 2023. If met, this would reflect an okay 5.6% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to shoot up 48% to €2.04. In the lead-up to this report, the analysts had been modelling revenues of €1.19b and earnings per share (EPS) of €2.04 in 2023. 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €61.23. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values CompuGroup Medical SE KGaA at €68.00 per share, while the most bearish prices it at €37.00. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that CompuGroup Medical SE KGaA's revenue growth is expected to slow, with the forecast 4.4% annualised growth rate until the end of 2023 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that CompuGroup Medical SE KGaA is also expected to grow slower than other industry participants.
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 CompuGroup Medical SE KGaA's revenues are expected to perform worse 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 CompuGroup Medical SE KGaA. 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 CompuGroup Medical SE KGaA going out to 2024, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for CompuGroup Medical SE KGaA that you should be aware of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
