Telekom Austria AG (VIE:TKA) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Simply Wall St · 10/18 04:04

Last week, you might have seen that Telekom Austria AG (VIE:TKA) released its third-quarter result to the market. The early response was not positive, with shares down 4.3% to €8.22 in the past week. Telekom Austria reported in line with analyst predictions, delivering revenues of €1.4b and statutory earnings per share of €0.97, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Telekom Austria after the latest results.

View our latest analysis for Telekom Austria

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WBAG:TKA Earnings and Revenue Growth October 18th 2024

After the latest results, the five analysts covering Telekom Austria are now predicting revenues of €5.54b in 2025. If met, this would reflect an okay 6.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 27% to €1.12. In the lead-up to this report, the analysts had been modelling revenues of €5.55b and earnings per share (EPS) of €1.13 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of €8.89, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Telekom Austria at €10.00 per share, while the most bearish prices it at €8.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Telekom Austria's past performance and to peers in the same industry. The analysts are definitely expecting Telekom Austria's growth to accelerate, with the forecast 5.0% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Telekom Austria to grow faster than the wider industry.

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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Telekom Austria going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Telekom Austria's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.