Deutsche Telekom AG (ETR:DTE) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

Deutsche Telekom AG (ETR:DTE) last week reported its latest third-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Deutsche Telekom reported €31b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.58 beat expectations, being 2.8% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Deutsche Telekom after the latest results.

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Taking into account the latest results, the current consensus from Deutsche Telekom's 14 analysts is for revenues of €128.9b in 2027. This would reflect a reasonable 5.1% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 30% to €2.44. Before this earnings report, the analysts had been forecasting revenues of €128.7b and earnings per share (EPS) of €2.43 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for Deutsche Telekom

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €36.14. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Deutsche Telekom, with the most bullish analyst valuing it at €43.00 and the most bearish at €28.10 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Deutsche Telekom's rate of growth is expected to accelerate meaningfully, with the forecast 4.1% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 2.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Deutsche Telekom is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €36.14, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Deutsche Telekom going out to 2028, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Deutsche Telekom that you should be aware of.

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