Results: Nemetschek SE Exceeded Expectations And The Consensus Has Updated Its Estimates

It's been a good week for Nemetschek SE (ETR:NEM) shareholders, because the company has just released its latest full-year results, and the shares gained 7.6% to €89.94. Nemetschek reported €852m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €1.40 beat expectations, being 6.3% higher than what the analysts expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nemetschek after the latest results.

Check out our latest analysis for Nemetschek

Taking into account the latest results, the consensus forecast from Nemetschek's 15 analysts is for revenues of €945.5m in 2024. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to climb 15% to €1.60. Before this earnings report, the analysts had been forecasting revenues of €943.6m and earnings per share (EPS) of €1.57 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €84.17. 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 Nemetschek, with the most bullish analyst valuing it at €112 and the most bearish at €54.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nemetschek's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Nemetschek'shistorical trends, as the 11% annualised revenue growth to the end of 2024 is roughly in line with the 12% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 9.4% per year. So although Nemetschek is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Nemetschek going out to 2026, and you can see them free on our platform here..

You can also see our analysis of Nemetschek's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.