Results: TAKKT AG Beat Earnings Expectations And Analysts Now Have New Forecasts
Investors in TAKKT AG (ETR:TTK) had a good week, as its shares rose 3.1% to close at €14.48 following the release of its yearly results. TAKKT reported €1.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.90 beat expectations, being 7.4% higher than what the analysts expected. 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.
View our latest analysis for TAKKT
After the latest results, the three analysts covering TAKKT are now predicting revenues of €1.37b in 2023. If met, this would reflect a modest 2.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to step up 19% to €1.08. Before this earnings report, the analysts had been forecasting revenues of €1.35b and earnings per share (EPS) of €0.97 in 2023. Although the revenue estimates have not really changed, we can see there's been a decent improvement in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
The consensus price target rose 5.9% to €16.33, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. There are some variant perceptions on TAKKT, with the most bullish analyst valuing it at €17.00 and the most bearish at €15.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 2.1% growth on an annualised basis. That is in line with its 1.9% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 3.9% per year. So it's pretty clear that TAKKT is expected to grow slower than similar companies in the same industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around TAKKT's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that TAKKT's revenues are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple TAKKT analysts - going out to 2025, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for TAKKT that you should be aware of.
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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.
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