Metro AG (ETR:B4B) has just released its third quarter results and analysts are updating their estimates

Investors in Metro AG (ETR:B4B) had a good week as its shares rose 4.1% to close at €4.54 following the release of its quarterly results. Results were respectable overall, with statutory profits of €1.21 per share roughly in line with analyst forecasts. Revenues of €8.0 billion were 3.0% ahead of analyst estimates. 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. With that in mind, we've compiled the latest statutory forecasts to see what analysts are expecting for next year.

Check out our latest analysis for Metro

Taking into account the latest results, the consensus forecast from the nine Metro analysts is for revenues of €32.2 billion in 2025. This represents a credible 4.2% increase in sales compared to the last 12 months. Metro is also expected to become profitable, with statutory earnings of €0.29 per share. Before this earnings report, analysts had been forecasting revenues of €32.2 billion and earnings per share (EPS) of €0.31 in 2025. So it looks like the overall sentiment has softened slightly following the latest results – there were no major changes in revenue estimates, but analysts have slightly lowered their earnings per share forecasts.

The consensus price target remained stable at €5.67. Analysts appeared to agree that their lower earnings forecasts are unlikely to lead to a lower share price in the foreseeable future. However, fixating on a single price target can be unwise, as the consensus target is effectively the average of analysts' price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some differing views on Metro. The most optimistic analyst values ​​the company at €9.50 and the most pessimistic at €4.00 per share. Notice the wide gap in analyst price targets? This tells us that there is a fairly wide range of possible scenarios for the underlying business.

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. We'd like to highlight that Metro's revenue growth is expected to slow. The forecast annual growth rate of 3.4% through the end of 2025 is well below the historical growth of 4.7% per annum over the past five years. Compare this to other companies (with analyst forecasts) in the industry, where overall revenue growth is expected to be 4.4% per annum. Taking into account the forecast growth slowdown, it seems obvious that Metro is also expected to grow more slowly than other industry participants.

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The conclusion

The biggest concern is that analysts have lowered their earnings per share estimates, suggesting that Metro may be facing business difficulties. Fortunately, analysts have also reaffirmed their revenue estimates, suggesting that the company is in line with expectations. However, our data suggests that Metro's revenue is expected to be worse than the wider industry. There has been no real change in the consensus price target, suggesting that the company's intrinsic value has not changed much with the latest estimates.

However, the long-term trajectory of company earnings is much more important than next year. We have estimates from multiple Metro analysts going out to 2026, and you can see them for free here on our platform.

However, one should always think about the risks. A typical example: We have 2 warning signs for Metro You should be aware.

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This Simply Wall St article is of a general nature. We comment solely on 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.