Syensqo SA/NV (EBR:SYENS) Full-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Syensqo SA/NV (EBR:SYENS) filed its yearly result this time last week. The early response was not positive, with shares down 3.6% to €78.53 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.6%to hit €7.1b. 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 Syensqo

Taking into account the latest results, Syensqo's twelve analysts currently expect revenues in 2024 to be €7.00b, approximately in line with the last 12 months. Statutory earnings per share are predicted to shoot up 224% to €5.90. Before this earnings report, the analysts had been forecasting revenues of €6.92b and earnings per share (EPS) of €6.12 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at €112, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Syensqo, with the most bullish analyst valuing it at €138 and the most bearish at €91.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.9% by the end of 2024. This indicates a significant reduction from annual growth of 12% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 8.4% annually for the foreseeable future. The forecasts do look comparatively optimistic for Syensqo, since they're expecting it to shrink slower than the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Syensqo. On the plus side, they made no changes to their revenue estimates - and they expect it to perform better than the wider industry. The consensus price target held steady at €112, with the latest estimates not enough to have an impact on their price targets.

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 Syensqo analysts - going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Syensqo 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.