Investors in tonies SE (FRA:TNIE) had a good week, as its shares rose 5.5% to close at €5.20 following the release of its annual results. The statutory results were mixed overall, with revenues of €361m in line with analyst forecasts, but losses of €0.10 per share, some 2.6% larger than the analysts were predicting. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for tonies

Following the latest results, tonies' four analysts are now forecasting revenues of €486.5m in 2024. This would be a huge 35% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with tonies forecast to report a statutory profit of €0.08 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €480.5m and earnings per share (EPS) of €0.073 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 7.0% to €10.75, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. The most optimistic tonies analyst has a price target of €13.00 per share, while the most pessimistic values it at €8.70. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting tonies' growth to accelerate, with the forecast 35% annualised growth to the end of 2024 ranking favourably alongside historical growth of 26% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.1% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that tonies is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards tonies following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple tonies analysts - going out to 2026, and you can see them free on our platform here.

We also provide an overview of the tonies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.