Interroll Holding AG Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Interroll Holding AG (VTX:INRN) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like a credible result overall - although revenues of CHF531m were in line with what the analysts predicted, Interroll Holding surprised by delivering a statutory profit of CHF85.97 per share, a notable 18% above expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Interroll Holding

After the latest results, the six analysts covering Interroll Holding are now predicting revenues of CHF590.7m in 2021. If met, this would reflect a solid 11% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to shrink 3.5% to CHF82.93 in the same period. Before this earnings report, the analysts had been forecasting revenues of CHF591.7m and earnings per share (EPS) of CHF78.17 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at CHF2,825, 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. There are some variant perceptions on Interroll Holding, with the most bullish analyst valuing it at CHF3,250 and the most bearish at CHF2,040 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Interroll Holding's past performance and to peers in the same industry. It's clear from the latest estimates that Interroll Holding's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 9.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Interroll Holding is expected to grow much faster than its 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 Interroll Holding following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at CHF2,825, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Interroll Holding analysts - going out to 2025, and you can see them free on our platform here.

You can also see our analysis of Interroll Holding's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.
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