Earnings Beat: Sportradar Group AG Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
It's been a pretty great week for Sportradar Group AG (NASDAQ:SRAD) shareholders, with its shares surging 13% to US$11.47 in the week since its latest full-year results. Revenues were €878m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at €0.12, an impressive 44% ahead of estimates. 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. 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 Sportradar Group
Taking into account the latest results, the consensus forecast from Sportradar Group's eleven analysts is for revenues of €1.05b in 2024. This reflects a solid 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 114% to €0.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.05b and earnings per share (EPS) of €0.26 in 2024. 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.
It might be a surprise to learn that the consensus price target was broadly unchanged at US$13.99, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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$20.06 and the most bearish at US$9.95 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 2024 expected to display 20% growth on an annualised basis. This is compared to a historical growth rate of 25% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.8% annually. So it's pretty clear that, while Sportradar Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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. 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 Sportradar Group. 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 Sportradar Group going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 1 warning sign we've spotted with Sportradar Group .
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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.
