In This Article:
It's been a pretty great week for Theon International Plc (AMS:THEON) shareholders, with its shares surging 16% to €26.55 in the week since its latest yearly results. The result was positive overall - although revenues of €352m were in line with what the analysts predicted, Theon International surprised by delivering a statutory profit of €0.98 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Our free stock report includes 2 warning signs investors should be aware of before investing in Theon International. Read for free now.
After the latest results, the six analysts covering Theon International are now predicting revenues of €419.5m in 2025. If met, this would reflect a notable 19% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 22% to €1.17. In the lead-up to this report, the analysts had been modelling revenues of €415.8m and earnings per share (EPS) of €1.17 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for Theon International
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 20% to €30.98. It looks as though they previously had some doubts over whether the business would live up to their expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Theon International analyst has a price target of €40.00 per share, while the most pessimistic values it at €19.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that Theon International's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 19% growth on an annualised basis. This is compared to a historical growth rate of 38% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% per year. Even after the forecast slowdown in growth, it seems obvious that Theon International is also expected to grow faster than the wider industry.