Shareholders of Télévision Française 1 Société anonyme (EPA:TFI) will be pleased this week, given that the stock price is up 13% to €7.73 following its latest yearly results. Revenues of €2.3b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.74, missing estimates by 7.6%. 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. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, Télévision Française 1 Société anonyme's eleven analysts currently expect revenues in 2020 to be €2.38b, approximately in line with the last 12 months. Statutory earnings per share are expected to grow 19% to €0.87. Before this earnings report, analysts had been forecasting revenues of €2.37b and earnings per share (EPS) of €0.85 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at €9.35, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. The most optimistic Télévision Française 1 Société anonyme analyst has a price target of €12.80 per share, while the most pessimistic values it at €5.30. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Zooming out to look at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up both against past performance, and against industry growth estimates. It's pretty clear that analysts expect Télévision Française 1 Société anonyme's revenue growth will slow down substantially, with revenues next year expected to grow 1.8%, compared to a historical growth rate of 3.1% over the past five years. Compare this to the other companies in this market with analyst coverage, which are forecast to grow their revenue at 1.8% per year. So it's pretty clear that, while Télévision Française 1 Société anonyme's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away from this is that analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Télévision Française 1 Société anonyme following these results. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall market. The consensus price target held steady at €9.35, with the latest estimates not enough to have an impact on analysts' estimated valuations.
Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Télévision Française 1 Société anonyme analysts - going out to 2022, and you can see them free on our platform here.
You can also view our analysis of Télévision Française 1 Société anonyme's balance sheet, and whether we think Télévision Française 1 Société anonyme is carrying too much debt, for free on our platform here.
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