Analysts Have Made A Financial Statement On UCB SA's (EBR:UCB) Half-Yearly Report

It's been a good week for UCB SA (EBR:UCB) shareholders, because the company has just released its latest interim results, and the shares gained 8.5% to €152. It was a workmanlike result, with revenues of €2.8b coming in 3.9% ahead of expectations, and statutory earnings per share of €1.76, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for UCB

Taking into account the latest results, the current consensus from UCB's 16 analysts is for revenues of €5.67b in 2024. This would reflect a satisfactory 3.9% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 75% to €2.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of €5.65b and earnings per share (EPS) of €2.13 in 2024. So the consensus seems to have become somewhat more optimistic on UCB's earnings potential following these results.

The consensus price target was unchanged at €146, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values UCB at €175 per share, while the most bearish prices it at €99.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting UCB's growth to accelerate, with the forecast 7.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that UCB is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards UCB following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €146, 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. At Simply Wall St, we have a full range of analyst estimates for UCB going out to 2026, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for UCB 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.

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