HomeToGo SE (ETR:HTG) has just released its first quarter results: This is what analysts think

It was a good week for HomeToGo SE (ETR:HTG) shareholders, as the company just released its latest Q1 results and shares rose 5.4% to €1.86. Revenues far exceeded expectations, coming in at €36 million, about 33% above analyst forecasts. Earnings numbers are an important time for investors as they can track a company's performance, look at what analysts are forecasting for next year, and see if there has been any change in sentiment towards the company. So, we've gathered the latest statutory consensus estimates following the earnings release to see what might be in store for next year.

Check out our latest analysis for HomeToGo

Taking into account the latest results, the consensus forecast of HomeToGo's six analysts is for revenues of €223.6 million in 2024. This represents a 20% increase in sales compared to the last 12 months. Losses are expected to decline, shrinking by 11% year-on-year to €0.17. Before this latest report, the consensus had expected revenues of €225.6 million and a loss of €0.17 per share.

The consensus price target remained unchanged at €4.76, suggesting that the company – losses and everything else included – is in line with estimates. However, that's not the only conclusion we can draw from this data, as some investors also like to consider the range of estimates when evaluating analyst price targets. Currently, the most optimistic analyst values ​​HomeToGo at €6.80 per share, while the most pessimistic analyst values ​​it at €3.70. Notice the wide gap in analyst price targets? This tells us that there is a fairly wide range of possible scenarios for the underlying company.

Now, looking at the bigger picture, one of the ways we can understand these forecasts is to evaluate them against both past performance and industry growth estimates. From the latest estimates, we can conclude that the forecasts expect HomeToGo's historical trends to continue, as the 27% annual revenue growth through the end of 2024 is roughly in line with the 27% annual growth over the past three years. In contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow revenue by 9.5% per year. So it's pretty clear that HomeToGo is expected to grow significantly faster than the industry itself.

The conclusion

Most importantly, the analysts have confirmed their loss per share estimates for next year. Fortunately, they have also confirmed their revenue numbers, suggesting that these are in line with expectations. Furthermore, our data suggests that revenue is expected to grow faster than the industry average. The consensus price target remained stable at €4.76, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't jump to a conclusion about HomeToGo too quickly. Long-term earnings power is much more important than next year's earnings. We have estimates – from multiple HomeToGo analysts – out to 2026, and you can see them for free here on our platform.

You should also be aware of the 2 warning signs we discovered it at HomeToGo.

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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.