Yahoo Finance Earnings Miss: Adecco Group AG Missed EPS By 7.1% And Analysts Are Revising Their Forecasts
Last week, you might have seen that Adecco Group AG (VTX:ADEN) released its annual result to the market. The early response was not positive, with shares down 5.7% to CHF35.17 in the past week. It looks like the results were a bit of a negative overall. While revenues of €24b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.1% to hit €1.94 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Adecco Group
Following last week's earnings report, Adecco Group's twelve analysts are forecasting 2024 revenues to be €24.1b, approximately in line with the last 12 months. Per-share earnings are expected to jump 33% to €2.58. In the lead-up to this report, the analysts had been modelling revenues of €24.0b and earnings per share (EPS) of €2.59 in 2024. 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.
The analysts reconfirmed their price target of CHF39.53, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Adecco Group, with the most bullish analyst valuing it at CHF46.12 and the most bearish at CHF33.05 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Adecco Group shareholders.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We can infer from the latest estimates that forecasts expect a continuation of Adecco Group'shistorical trends, as the 0.5% annualised revenue growth to the end of 2024 is roughly in line with the 0.5% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.2% annually. So although Adecco Group is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Adecco Group going out to 2026, and you can see them free on our platform here.
Even so, be aware that Adecco Group is showing 2 warning signs in our investment analysis , you should know about...
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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.
