Tessenderlo Group NV Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Tessenderlo Group NV (EBR:TESB) filed its yearly result this time last week. The early response was not positive, with shares down 3.0% to €37.55 in the past week. It was not a great result overall. While revenues of €1.7b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 20% to hit €2.30 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Tessenderlo Group

Taking into account the latest results, Tessenderlo Group's three analysts currently expect revenues in 2021 to be €1.76b, approximately in line with the last 12 months. Per-share earnings are expected to soar 31% to €3.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.80b and earnings per share (EPS) of €3.05 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of €43.33, showing that the business is executing well and in line with expectations. 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 Tessenderlo Group, with the most bullish analyst valuing it at €44.00 and the most bearish at €43.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Tessenderlo Group is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Tessenderlo Group's revenue growth is expected to slow, with the forecast 1.5% annualised growth rate until the end of 2021 being well below the historical 2.1% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Tessenderlo Group is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Tessenderlo Group's revenues are expected to perform worse 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 Tessenderlo Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tessenderlo Group analysts - going out to 2023, and you can see them free on our platform here.

Even so, be aware that Tessenderlo Group is showing 1 warning sign in our investment analysis , you should know about...

When trading Tessenderlo Group or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.