United Internet AG (ETR:UTDI) just released its latest quarterly earnings results and things are looking upbeat. The company beat expectations with sales of €1.5 billion, up 2.4% on forecasts. At €0.54, statutory earnings per share (EPS) exceeded estimates by 8.9%. Analysts typically update their forecasts with every earnings report, and their estimates allow us to assess whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be pleased to know that we’ve summarized the latest legal forecasts to see if analysts have changed their minds on United Internet following the latest results.
Check out our latest analysis for United Internet
According to the latest results, the 16 analysts at United Internet are now forecasting sales of 6.04 billion for 2023. Statutory earnings per share are expected to increase by 12% to €2.26. But ahead of the latest numbers, analysts had $6.03 billion in sales for the business for 2023, assuming there weren’t any material changes to their estimates.
The analysts confirmed their price target of €36.87 and showed that the business is developing well and in line with expectations. It might also be instructive to look at the range of analyst estimates to assess how different the opinions of the outliers are from the mean. United Internet’s most optimistic analyst has a price target of €55.00 per share, while the most pessimistic estimates it at €21.10. This is a fairly wide spread of estimates, indicating that analysts are forecasting a wide range of possible outcomes for the company.
One way to get more context on these forecasts is to look at how they compare to both past performance and the performance of other companies in the same industry. It’s pretty clear that United Internet’s revenue growth is expected to slow significantly, with revenue expected to grow 3.7% year-on-year through the end of 2023. This compares to a historic growth rate of 5.7% over the past five years. Compare that to the industry’s other companies with analyst coverage, which are forecasting their earnings (combined) to grow 3.1% annually. So it’s pretty clear that United Internet’s revenue growth, while slowing, is expected to grow roughly in line with the industry.
The final result
The most obvious conclusion is that the business outlook has not changed much recently as analysts keep their earnings forecasts steady, in line with previous estimates. Thankfully, there haven’t been any real changes to the sales forecasts as the business will continue to grow in line with the broader industry. There was no real change in the consensus price target, suggesting that the company’s intrinsic value has not changed significantly from the most recent estimates.
Based on this train of thought, we believe the company’s long-term prospects are much more relevant than next year’s earnings. We have estimates – from several United Internet analysts – up to 2024 and you can view them for free on our platform here.
It’s also worth noting that we found 1 warning sign for United Internet that you need to consider.
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This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.
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