Earnings Report: Burckhardt Compression Holding AG Missed Revenue Estimates By 5.1%

Investors in Burckhardt Compression Holding AG (VTX:BCHN) had a good week, as its shares rose 3.1% to close at CHF655 following the release of its interim results. Results look mixed - while revenue fell marginally short of analyst estimates at CHF437m, statutory earnings beat expectations 3.7%, with Burckhardt Compression Holding reporting profits of CHF10.99 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Burckhardt Compression Holding

After the latest results, the five analysts covering Burckhardt Compression Holding are now predicting revenues of CHF1.05b in 2025. If met, this would reflect a modest 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 4.8% to CHF29.34. In the lead-up to this report, the analysts had been modelling revenues of CHF1.07b and earnings per share (EPS) of CHF29.56 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of CHF663, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Burckhardt Compression Holding at CHF750 per share, while the most bearish prices it at CHF579. This is a very narrow spread of estimates, implying either that Burckhardt Compression Holding is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Burckhardt Compression Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.7% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.9% per year. So it's pretty clear that, while Burckhardt Compression Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. 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.

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. We have estimates - from multiple Burckhardt Compression Holding analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Burckhardt Compression Holding that you need to take into consideration.

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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.