Shareholders might have noticed that Scout24 SE (ETR:G24) filed its second-quarter result this time last week. The early response was not positive, with shares down 5.1% to €68.20 in the past week. It was a credible result overall, with revenues of €140m and statutory earnings per share of €2.43 both in line with analyst estimates, showing that Scout24 is executing in line with expectations. 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 Scout24 after the latest results.
View our latest analysis for Scout24
Following last week’s earnings report, Scout24’s 16 analysts are forecasting 2024 revenues to be €565.9m, approximately in line with the last 12 months. Per-share earnings are expected to accumulate 6.2% to €2.50. Before this earnings report, the analysts had been forecasting revenues of €565.1m and earnings per share (EPS) of €2.63 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
The consensus price target held steady at €78.50, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Scout24 at €84.00 per share, while the most bearish prices it at €68.00. This is a very narrow spread of estimates, implying either that Scout24 is an easy company to value, or – more likely – the analysts are relying heavily on some key assumptions.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Scout24’s past performance and to peers in the same industry. We would highlight that Scout24’s revenue growth is expected to slow, with the forecast 1.3% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Scout24 is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €78.50, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn’t be too quick to come to a conclusion on Scout24. Long-term earnings power is much more important than next year’s profits. We have forecasts for Scout24 going out to 2026, and you can see them free on our platform here.
However, before you get too enthused, we’ve discovered 1 warning sign for Scout24 that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.