Yahoo Finance OHB SE Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year
It's been a good week for OHB SE (ETR:OHB) shareholders, because the company has just released its latest third-quarter results, and the shares gained 5.1% to €30.90. Sales fell 21% shy of analyst expectations, coming in at €240m. Statutory earnings per share slightly exceeded forecasts at €0.62 but overall it looks like the analystswere a bit over-enthusiastic on revenues. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for OHB
Taking into account the latest results, the most recent consensus for OHB from three analysts is for revenues of €1.23b in 2023 which, if met, would be a huge 27% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 23% to €2.46. Before this earnings report, the analysts had been forecasting revenues of €1.27b and earnings per share (EPS) of €2.54 in 2023. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.
Despite the cuts to forecast earnings, there was no real change to the €46.33 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on OHB, with the most bullish analyst valuing it at €49.00 and the most bearish at €45.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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 OHB's growth to accelerate, with the forecast 21% annualised growth to the end of 2023 ranking favourably alongside historical growth of 1.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that OHB is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded their revenue estimates, although industry data suggests that OHB's revenues are expected to grow faster 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.
With that in mind, we wouldn't be too quick to come to a conclusion on OHB. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for OHB going out to 2024, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we've spotted with OHB (including 2 which can't be ignored) .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
