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Earnings Beat: TeamViewer SE Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models
One of the biggest stories of last week was how TeamViewer SE (ETR:TMV) shares plunged 29% in the week since its latest third-quarter results, closing yesterday at €5.21. Revenues were €184m, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €0.23 were also better than expected, beating analyst predictions by 16%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for TeamViewer from 13 analysts is for revenues of €777.8m in 2027. If met, it would imply a reasonable 4.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 6.6% to €0.93. Before this earnings report, the analysts had been forecasting revenues of €784.9m and earnings per share (EPS) of €0.95 in 2027. 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.
See our latest analysis for TeamViewer
There were no changes to revenue or earnings estimates or the price target of €7.77, suggesting that the company has met expectations in its recent result. 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 TeamViewer at €13.00 per share, while the most bearish prices it at €5.70. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TeamViewer's past performance and to peers in the same industry. We would highlight that TeamViewer's revenue growth is expected to slow, with the forecast 3.7% annualised growth rate until the end of 2027 being well below the historical 8.8% 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 11% 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 TeamViewer.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that TeamViewer's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €7.77, 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 TeamViewer. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for TeamViewer going out to 2028, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for TeamViewer you should be aware of.
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