VAT Group AG (VTX:VACN) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that VAT Group AG (VTX:VACN) filed its full-year result this time last week. The early response was not positive, with shares down 7.3% to CHF234 in the past week. It was a credible result overall, with revenues of CHF692m and statutory earnings per share of CHF4.45 both in line with analyst estimates, showing that VAT Group is executing in line with 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for VAT Group

After the latest results, the ten analysts covering VAT Group are now predicting revenues of CHF769.1m in 2021. If met, this would reflect a notable 11% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 22% to CHF5.43. In the lead-up to this report, the analysts had been modelling revenues of CHF765.8m and earnings per share (EPS) of CHF5.39 in 2021. 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 CHF235, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on VAT Group, with the most bullish analyst valuing it at CHF300 and the most bearish at CHF165 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 VAT Group's past performance and to peers in the same industry. The analysts are definitely expecting VAT Group's growth to accelerate, with the forecast 11% annualised growth to the end of 2021 ranking favourably alongside historical growth of 6.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.6% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect VAT Group 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. 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 CHF235, 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 forecasts for VAT Group going out to 2025, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with VAT Group , and understanding them should be part of your investment process.

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