Adecco Group AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week saw the newest annual earnings release from Adecco Group AG (VTX:ADEN), an important milestone in the company's journey to build a stronger business. It looks like the results were a bit of a negative overall. While revenues of €24b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.1% to hit €1.94 per share. 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 Adecco Group after the latest results.

See our latest analysis for Adecco Group

Taking into account the latest results, Adecco Group's twelve analysts currently expect revenues in 2024 to be €24.1b, approximately in line with the last 12 months. Per-share earnings are expected to soar 31% to €2.54. In the lead-up to this report, the analysts had been modelling revenues of €24.0b and earnings per share (EPS) of €2.56 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of CHF39.17, 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. The most optimistic Adecco Group analyst has a price target of CHF46.42 per share, while the most pessimistic values it at CHF30.01. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Adecco Group shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 0.6% growth on an annualised basis. That is in line with its 0.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.4% per year. So although Adecco Group is expected to maintain its revenue growth rate, it's forecast to grow slower 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Adecco Group's revenue is expected to perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Adecco Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Adecco Group going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Adecco Group (2 are a bit concerning) you should be aware 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.