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Investors in GFT Technologies SE (ETR:GFT) had a good week, as its shares rose 4.2% to close at €26.42 following the release of its second-quarter results. GFT Technologies reported in line with analyst predictions, delivering revenues of €201m and statutory earnings per share of €1.76, suggesting the business is executing well and in line with its plan. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Check out our latest analysis for GFT Technologies
Taking into account the latest results, the most recent consensus for GFT Technologies from five analysts is for revenues of €818.0m in 2023. If met, it would imply a satisfactory 7.0% increase on its revenue over the past 12 months. Statutory per share are forecast to be €1.80, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €851.5m and earnings per share (EPS) of €1.89 in 2023. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
The analysts made no major changes to their price target of €48.50, suggesting the downgrades are not expected to have a long-term impact on GFT Technologies' valuation. 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 GFT Technologies, with the most bullish analyst valuing it at €70.00 and the most bearish at €36.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the GFT Technologies' past performance and to peers in the same industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 15% growth on an annualised basis. That is in line with its 14% 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 9.3% per year. So although GFT Technologies is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.