Sipef NV Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

It's been a good week for Sipef NV (EBR:SIP) shareholders, because the company has just released its latest yearly results, and the shares gained 5.6% to €62.40. Results look mixed - while revenue fell marginally short of analyst estimates at US$416m, statutory earnings beat expectations 6.4%, with Sipef reporting profits of US$8.99 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Sipef after the latest results.

View our latest analysis for Sipef

Taking into account the latest results, the consensus forecast from Sipef's twin analysts is for revenues of US$463.0m in 2022, which would reflect a solid 11% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to reduce 9.0% to US$8.19 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$403.5m and earnings per share (EPS) of US$5.86 in 2022. There has definitely been an improvement in perception after these results, with the analysts noticeably increasing both their earnings and revenue estimates.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 7.0% to €68.72per share.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Sipef's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 2.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sipef to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Sipef's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Sipef (including 1 which is potentially serious) .

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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.