Investors in CENIT Aktiengesellschaft (ETR:CSH) had a good week, as its shares rose 6.0% to close at €13.30 following the release of its quarterly results. It was a credible result overall, with revenues of €44m and statutory earnings per share of €0.75 both in line with analyst estimates, showing that CENIT is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for CENIT

Taking into account the latest results, the current consensus from CENIT's four analysts is for revenues of €181.6m in 2023. This would reflect a modest 3.4% increase on its revenue over the past 12 months. Statutory earnings per share are expected to tumble 23% to €0.68 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €182.5m and earnings per share (EPS) of €0.63 in 2023. So the consensus seems to have become somewhat more optimistic on CENIT's earnings potential following these results.

The consensus price target was unchanged at €19.50, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 CENIT at €21.00 per share, while the most bearish prices it at €18.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that CENIT's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.8% growth to the end of 2023 on an annualised basis. That is well above its historical decline of 2.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.1% annually. So while CENIT's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around CENIT's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 CENIT going out to 2025, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for CENIT you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.