UCB SA Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

UCB SA (EBR:UCB) just released its yearly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 4.3% to hit €6.2b. UCB also reported a statutory profit of €5.61, which was an impressive 97% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on UCB after the latest results.

Check out our latest analysis for UCB

Taking into account the latest results, the consensus forecast from UCB's 17 analysts is for revenues of €6.79b in 2025. This reflects a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to fall 11% to €4.99 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.85b and earnings per share (EPS) of €5.15 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €209, 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. Currently, the most bullish analyst values UCB at €250 per share, while the most bearish prices it at €135. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the UCB's past performance and to peers in the same industry. The analysts are definitely expecting UCB's growth to accelerate, with the forecast 10% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.4% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that UCB is expected to grow much faster than 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 UCB. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for UCB going out to 2027, and you can see them free on our platform here..

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

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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.