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Euronext N.V. (EPA:ENX) Third-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For Next Year
Euronext N.V. (EPA:ENX) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to €170 in the week after its latest quarterly results. It was a workmanlike result, with revenues of €547m coming in 3.5% ahead of expectations, and statutory earnings per share of €1.90, in line with analyst appraisals. The 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Euronext's 16 analysts is for revenues of €2.24b in 2027. This reflects a decent 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 14% to €8.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of €2.22b and earnings per share (EPS) of €8.26 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.
View our latest analysis for Euronext
The analysts reconfirmed their price target of €176, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Euronext, with the most bullish analyst valuing it at €200 and the most bearish at €136 per share. 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.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Euronext's revenue growth is expected to slow, with the forecast 6.4% annualised growth rate until the end of 2027 being well below the historical 8.8% p.a. growth over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 6.4% per year. So it's clear that despite the slowdown in growth, Euronext is still expected to grow meaningfully faster than the wider industry.
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, they made no changes to their revenue estimates - and they expect it to perform better than 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. At Simply Wall St, we have a full range of analyst estimates for Euronext going out to 2028, and you can see them free on our platform here..
It might also be worth considering whether Euronext's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
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