News
Analysts gave a financial statement on Metro AG’s (ETR:B4B) semi-annual report
Shareholders may have noticed that AG Metro (ETR:B4B) presented its half-yearly results this time last week. The initial response was not positive, with shares falling 2.5% to 4.92 euros last week. Metro released results in line with analysts’ forecasts, showing revenues of 15 billion euros and statutory profits per share of 1.21 euros, suggesting that the business is working well and in line with its plan. Earnings are an important time for investors as they can track a company’s performance, see what analysts are predicting for next year, and see if there has been a change in sentiment towards the company. So we’ve rounded up the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Metro
earnings and revenue growth
Following last week’s earnings report, Metro’s nine analysts forecast revenue of €31.1 billion for 2024, roughly in line with the last 12 months. Metro is also expected to become profitable, with statutory profits of €0.22 per share. However, before the latest earnings, analysts were forecasting revenue of €31.1 billion and earnings per share (EPS) of €0.17 in 2024. There has been no real change in revenue estimates, but analysts seem more optimistic about earnings, given the large increase in EPS expectations following these results.
There were no major changes to the consensus price target of €5.93, suggesting that the improved earnings per share outlook is not enough to have a positive long-term impact on the stock’s valuation. But there’s another way to think about price targets: looking at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on the potential outcomes for the business. The most optimistic Metro analyst has a target price of €9.50 per share, while the most pessimistic values it at €4.00. This is a fairly wide spread of estimates, suggesting analysts are predicting a wide range of possible outcomes for the business.
These estimates are interesting, but it may be useful to draw some broad strokes to see how the predictions compare, both to Metro’s past performance and to peers in the same industry. industry. It is quite clear that there is an expectation that Metro’s revenue growth will slow substantially, with revenues until the end of 2024 showing growth of 3.4% on an annualized basis. This is compared to a historic growth rate of 4.5% over the past five years. By way of comparison, other companies in the sector with analyst coverage are forecast to grow revenue at 4.6% per year. Given the anticipated slowdown in growth, it seems obvious that Metro is also expected to grow more slowly than other industry players.
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The end result
The most important thing here is that analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Metro following these results. Fortunately, analysts also reconfirmed their revenue estimates, suggesting that tracking is in line with expectations. Although our data suggests that Metro’s revenue is expected to perform worse than the broader industry. The consensus price target remained stable at €5.93, with the most recent estimates not being enough to have an impact on their price targets.
Following this line of thought, we understand that the long-term prospects of the business are much more relevant than next year’s results. We have estimates – from several Metro analysts – out to 2026, and you can See them for free on our platform here.
Additionally, you should also learn about the 2 warning signs we saw with the Metro .
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only 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 into account your objectives or your financial situation. Our goal is to bring you long-term focused analysis driven by fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St has no position in any of the stocks mentioned.