As you may know, Tencent Music Entertainment Group (NYSE:TME) recently reported its full-year numbers. Tencent Music Entertainment Group reported revenue of C$28 billion, roughly in line with analyst expectations, but statutory earnings per share (EPS) of C$3.11 beat expectations, beating analysts’ expectations by 2.8%. I surpassed it. Analysts typically update their forecasts with each earnings report, and we can use their forecasts to determine whether their view of the company has changed or if there are any new concerns to be aware of. . Our readers may be pleased to see that we have aggregated the latest statutory forecasts to see if the analysts have changed their mind on Tencent Music Entertainment Group following the latest results.
Check out our latest analysis for Tencent Music Entertainment Group.
Taking into account the latest results, the consensus forecast of Tencent Music Entertainment Group’s 31 analysts is for revenue in 2024 of CA$28.6b. This reflects his 3.1% significant improvement in earnings compared to the previous 12 months. Earnings per share are expected to expand by 18% to CN3.72. Before this earnings report, analysts had expected 2024 sales of CA$28.6b and earnings per share (EPS) of CA$3.72. So it’s clear that there hasn’t been much change in business performance, despite analyst forecast updates. Expectations for the business following the latest financial results.
Analysts reaffirmed their $12.88 price target, indicating the business is performing well and in line with expectations. It may also be useful to examine the range of analysts’ estimates to assess how different the outlier’s opinion is from the average. The most optimistic Tencent Music Entertainment Group analyst has a price target of $17.77 per share, while the most pessimistic has a price target of $8.92. Still, such a narrow range of estimates suggests the analysts have a pretty good idea of the company’s value.
One way to get more context about these forecasts is to compare them to their past performance and to the performance of other companies in the same industry. Tencent Music Entertainment Group’s revenue growth is expected to slow, highlighting that the forecast annual growth rate of 3.1% through the end of 2024 is significantly lower than the historical annual growth rate of 5.7% over the past five years I think that I want to do it. Compare this to other companies in the industry, which are expected to have a combined annual revenue growth of 8.2% (analyst forecasts). So it’s clear that while revenue growth is expected to slow, the industry as a whole is expected to grow at a faster pace than Tencent Music Entertainment Group.
conclusion
Most importantly, there’s been no major change in sentiment, with the analysts reaffirming that the business is performing in line with previous earnings per share expectations. On the plus side, there were no major changes to revenue forecasts. However, forecasts suggest that it will perform worse than the broader industry. The consensus price target remains unchanged at US$12.88, and the latest forecast is not significant enough to impact the target price.
Based on this idea, we think the long-term outlook for the business is far more relevant than next year’s earnings. His forecasts to 2026 by multiple analysts at Tencent Music Entertainment Group are available for free on this platform.
Another thing to consider is whether management and directors have recently bought or sold shares. Here we provide an overview of all public market stock trades on our platform over the past 12 months.
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This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.
