Syensqo SA/NV Just Missed Earnings With A Surprise Loss - Here Are Analysts Latest Forecasts

The quarterly results for Syensqo SA/NV (EBR:SYENS) were released last week, making it a good time to revisit its performance. Things were not great overall, with a surprise (statutory) loss of €0.03 per share on revenues of €1.6b, even though the analysts had been expecting a profit. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus, from the 16 analysts covering Syensqo, is for revenues of €6.58b in 2025. This implies a noticeable 3.3% reduction in Syensqo's revenue over the past 12 months. Syensqo is also expected to turn profitable, with statutory earnings of €3.54 per share. In the lead-up to this report, the analysts had been modelling revenues of €6.68b and earnings per share (EPS) of €4.47 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

Check out our latest analysis for Syensqo

It might be a surprise to learn that the consensus price target was broadly unchanged at €85.89, 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. The most optimistic Syensqo analyst has a price target of €110 per share, while the most pessimistic values it at €62.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that Syensqo's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 4.3% to the end of 2025. This tops off a historical decline of 1.2% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue shrink 3.9% per year. So it's pretty clear that, while it does have declining revenues, Syensqo is expected to suffer at about the same rate as its 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. The analysts also reconfirmed their revenue estimates, suggesting that it's is performing in line with expectations, and are growing in line with the wider industry. The consensus price target held steady at €85.89, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Syensqo. 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 Syensqo going out to 2027, and you can see them free on our platform here..

You can also view our analysis of Syensqo's balance sheet, and whether we think Syensqo is carrying too much debt, for free on our platform here.

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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.