Temenos AG (VTX:TEMN) shareholders are in all probability feeling somewhat upset, since its shares fell 7.6% to CHF58.35 within the week after its newest first-quarter outcomes. Outcomes look combined – whereas income fell marginally in need of analyst estimates at US$232m, statutory earnings beat expectations 6.1%, with Temenos reporting earnings of US$0.40 per share. Following the consequence, the analysts have up to date their earnings mannequin, and it might be good to know whether or not they suppose there’s been a robust change within the firm’s prospects, or if it is enterprise as ordinary. We have gathered the latest statutory forecasts to see whether or not the analysts have modified their earnings fashions, following these outcomes.
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Following final week’s earnings report, Temenos’ 14 analysts are forecasting 2025 revenues to be US$1.04b, roughly according to the final 12 months. Statutory earnings per share are forecast to descend 11% to US$2.19 in the identical interval. Within the lead-up to this report, the analysts had been modelling revenues of US$1.06b and earnings per share (EPS) of US$2.27 in 2025. The analysts appear to have change into somewhat extra adverse on the enterprise after the most recent outcomes, given the small dip of their earnings per share numbers for subsequent yr.
Check out our latest analysis for Temenos
The consensus worth goal held regular at CHF69.92, with the analysts seemingly voting that their decrease forecast earnings are usually not anticipated to result in a decrease inventory worth within the foreseeable future. Fixating on a single worth goal could be unwise although, for the reason that consensus goal is successfully the common of analyst worth targets. Consequently, some buyers like to have a look at the vary of estimates to see if there are any diverging opinions on the corporate’s valuation. Probably the most optimistic Temenos analyst has a worth goal of CHF91.64 per share, whereas essentially the most pessimistic values it at CHF45.87. Analysts positively have various views on the enterprise, however the unfold of estimates shouldn’t be large sufficient in our view to counsel that excessive outcomes may await Temenos shareholders.
These estimates are fascinating, however it may be helpful to color some extra broad strokes when seeing how forecasts examine, each to the Temenos’ previous efficiency and to friends in the identical industry. We might spotlight that income is anticipated to reverse, with a forecast 1.0% annualised decline to the tip of 2025. That could be a notable change from historic progress of two.4% over the past 5 years. In contrast, our knowledge means that different corporations (with analyst protection) in the identical trade are forecast to see their income develop 11% yearly for the foreseeable future. It is fairly clear that Temenos’ revenues are anticipated to carry out considerably worse than the broader trade.
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