Schweiter Technologies AG (VTX:SWTQ) Just Reported Earnings, And Analysts Cut Their Target Price

It's been a good week for Schweiter Technologies AG (VTX:SWTQ) shareholders, because the company has just released its latest interim results, and the shares gained 3.4% to CHF410. Revenues came in 2.8% below expectations, at CHF528m. Statutory earnings per share were relatively better off, with a per-share profit of CHF19.30 being roughly in line with analyst estimates. 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 Schweiter Technologies after the latest results.

View our latest analysis for Schweiter Technologies

Taking into account the latest results, the current consensus from Schweiter Technologies' five analysts is for revenues of CHF1.07b in 2024. This would reflect a satisfactory 3.2% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 8.5% to CHF23.14 in the same period. Before this earnings report, the analysts had been forecasting revenues of CHF1.07b and earnings per share (EPS) of CHF21.12 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The average the analysts price target fell 6.1% to CHF534, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. 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. There are some variant perceptions on Schweiter Technologies, with the most bullish analyst valuing it at CHF800 and the most bearish at CHF410 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Schweiter Technologies' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.4% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 1.2% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.2% annually. So it looks like Schweiter Technologies 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 Schweiter Technologies following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Schweiter Technologies analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Schweiter Technologies 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.