Earnings Update: Here's Why Analysts Just Lifted Their All for One Group SE (ETR:A1OS) Price Target To €71.50

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It's been a pretty great week for All for One Group SE (ETR:A1OS) shareholders, with its shares surging 12% to €47.90 in the week since its latest yearly results. Results were roughly in line with estimates, with revenues of €488m and statutory earnings per share of €2.23. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on All for One Group after the latest results.

View our latest analysis for All for One Group

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XTRA:A1OS Earnings and Revenue Growth December 23rd 2023

Taking into account the latest results, the most recent consensus for All for One Group from dual analysts is for revenues of €514.8m in 2024. If met, it would imply a credible 5.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 56% to €3.51. Before this earnings report, the analysts had been forecasting revenues of €515.0m and earnings per share (EPS) of €3.47 in 2024. 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.

The consensus price target rose 5.9% to €71.50despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of All for One Group's earnings by assigning a price premium.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that All for One Group's revenue growth is expected to slow, with the forecast 5.5% annualised growth rate until the end of 2024 being well below the historical 7.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than All for One Group.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that in mind, we wouldn't be too quick to come to a conclusion on All for One Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for All for One Group going out as far as 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with All for One Group , and understanding it should be part of your investment process.

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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.

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