Yahoo Finance Earnings Miss: Stratec SE Missed EPS By 24% And Analysts Are Revising Their Forecasts
Shareholders might have noticed that Stratec SE (ETR:SBS) filed its annual result this time last week. The early response was not positive, with shares down 5.7% to €40.20 in the past week. Statutory earnings per share fell badly short of expectations, coming in at €1.07, some 24% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €262m. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Stratec
After the latest results, the six analysts covering Stratec are now predicting revenues of €290.0m in 2024. If met, this would reflect a solid 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 118% to €2.34. Yet prior to the latest earnings, the analysts had been anticipated revenues of €281.3m and earnings per share (EPS) of €2.04 in 2024. So it seems there's been a definite increase in optimism about Stratec's future following the latest results, with a solid gain to the earnings per share forecasts in particular.
Despite these upgrades, the consensus price target fell 6.1% to €49.00, perhaps signalling that the uplift in performance is not expected to last. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Stratec at €58.00 per share, while the most bearish prices it at €40.00. 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 Stratec shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Stratec's growth to accelerate, with the forecast 11% annualised growth to the end of 2024 ranking favourably alongside historical growth of 6.5% 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 6.7% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Stratec to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Stratec following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Stratec analysts - going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Stratec 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.
