Here's What Analysts Are Forecasting For Emmi AG (VTX:EMMN) After Its Full-Year Results

Investors in Emmi AG (VTX:EMMN) had a good week, as its shares rose 4.2% to close at CHF912 following the release of its annual results. Emmi reported CHF4.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CHF34.82 beat expectations, being 3.3% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Emmi

Taking into account the latest results, Emmi's four analysts currently expect revenues in 2024 to be CHF4.21b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 23% to CHF42.75. In the lead-up to this report, the analysts had been modelling revenues of CHF4.25b and earnings per share (EPS) of CHF40.99 in 2024. So the consensus seems to have become somewhat more optimistic on Emmi's earnings potential following these results.

There's been no major changes to the consensus price target of CHF993, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Emmi analyst has a price target of CHF1,100 per share, while the most pessimistic values it at CHF840. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.8% annualised decline to the end of 2024. That is a notable change from historical growth of 5.2% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.5% annually for the foreseeable future. It's pretty clear that Emmi's revenues are expected to perform substantially worse than 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 Emmi following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CHF993, 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. At Simply Wall St, we have a full range of analyst estimates for Emmi going out to 2026, and you can see them free on our platform here..

You can also view our analysis of Emmi's balance sheet, and whether we think Emmi is carrying too much debt, for free on our platform here.

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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.