Polytec Holding AG (VIE:PYT) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Polytec Holding AG (VIE:PYT) last week reported its latest interim results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were pretty good overall. While revenues of €350m were in line with analyst predictions, statutory losses were much smaller than expected, with Polytec Holding losing €0.11 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Polytec Holding after the latest results.

See our latest analysis for Polytec Holding

Taking into account the latest results, the consensus forecast from Polytec Holding's dual analysts is for revenues of €684.7m in 2024. This reflects a credible 5.9% improvement in revenue compared to the last 12 months. Polytec Holding is also expected to turn profitable, with statutory earnings of €0.17 per share. Before this earnings report, the analysts had been forecasting revenues of €675.2m and earnings per share (EPS) of €0.23 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

The consensus price target held steady at €5.23, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Polytec Holding's growth to accelerate, with the forecast 12% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.8% 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 4.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Polytec Holding 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €5.23, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Polytec Holding that you should be aware of.

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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.