Analysts Have Made A Financial Statement On AUTO1 Group SE's (ETR:AG1) Second-Quarter Report
AUTO1 Group SE (ETR:AG1) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.6%to hit €2.4b. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, AUTO1 Group's twelve analysts are now forecasting revenues of €9.92b in 2026. This would be a meaningful 8.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 61% to €0.60. Before this earnings report, the analysts had been forecasting revenues of €9.93b and earnings per share (EPS) of €0.60 in 2026. 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.
View our latest analysis for AUTO1 Group
The analysts reconfirmed their price target of €31.71, showing that the business is executing well and in line with expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on AUTO1 Group, with the most bullish analyst valuing it at €39.00 and the most bearish at €20.45 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. The analysts are definitely expecting AUTO1 Group's growth to accelerate, with the forecast 18% annualised growth to the end of 2026 ranking favourably alongside historical growth of 12% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that AUTO1 Group is expected to grow much faster than its industry.
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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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.
With that in mind, we wouldn't be too quick to come to a conclusion on AUTO1 Group. Long-term earnings power is much more important than next year's profits. We have forecasts for AUTO1 Group 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 AUTO1 Group that you should be aware of.
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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.