EVS Broadcast Equipment SA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

EVS Broadcast Equipment SA (EBR:EVS) just released its latest annual results and things are looking bullish. The company beat expectations with revenues of €173m arriving 3.0% ahead of forecasts. Statutory earnings per share (EPS) were €2.65, 8.4% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on EVS Broadcast Equipment after the latest results.

View our latest analysis for EVS Broadcast Equipment

Taking into account the latest results, the most recent consensus for EVS Broadcast Equipment from three analysts is for revenues of €188.0m in 2024. If met, it would imply a meaningful 8.5% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decrease 3.6% to €2.65 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €184.0m and earnings per share (EPS) of €2.64 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the small increase to revenue estimates.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of €36.17, implying that the uplift in revenue is not expected to greatly contribute to EVS Broadcast Equipment's valuation in the near term. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic EVS Broadcast Equipment analyst has a price target of €38.00 per share, while the most pessimistic values it at €33.00. This is a very narrow spread of estimates, implying either that EVS Broadcast Equipment is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that EVS Broadcast Equipment's revenue growth is expected to slow, with the forecast 8.5% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.3% per year. Even after the forecast slowdown in growth, it seems obvious that EVS Broadcast Equipment is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at €36.17, 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 EVS Broadcast Equipment. 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 EVS Broadcast Equipment going out to 2026, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for EVS Broadcast Equipment that you need to be mindful 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.