Earnings Beat: TeamViewer SE Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
Investors in TeamViewer SE (ETR:TMV) had a good week, as its shares rose 8.4% to close at €14.53 following the release of its full-year results. It looks like a credible result overall - although revenues of €627m were in line with what the analysts predicted, TeamViewer surprised by delivering a statutory profit of €0.66 per share, a notable 13% above expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for TeamViewer
Taking into account the latest results, the current consensus from TeamViewer's 13 analysts is for revenues of €672.6m in 2024. This would reflect an okay 7.3% increase on its revenue over the past 12 months. Statutory per share are forecast to be €0.70, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €672.9m and earnings per share (EPS) of €0.69 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of €17.20, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on TeamViewer, with the most bullish analyst valuing it at €21.00 and the most bearish at €13.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TeamViewer's past performance and to peers in the same industry. It's pretty clear that there is an expectation that TeamViewer's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than TeamViewer.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €17.20, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on TeamViewer. Long-term earnings power is much more important than next year's profits. We have forecasts for TeamViewer going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with TeamViewer , and understanding this should be part of your investment process.
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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.
