COLTENE Holding AG (VTX:CLTN) Analysts Are Pretty Bullish On The Stock After Recent Results

There's been a notable change in appetite for COLTENE Holding AG (VTX:CLTN) shares in the week since its annual report, with the stock down 18% to CHF87.90. It looks like the results were a bit of a negative overall. While revenues of CHF279m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.2% to hit CHF5.31 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 COLTENE Holding

Taking into account the latest results, COLTENE Holding's two analysts currently expect revenues in 2022 to be CHF284.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 3.3% to CHF5.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF289.9m and earnings per share (EPS) of CHF5.52 in 2022. 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 consensus price target rose 27% to CHF107despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of COLTENE Holding's earnings by assigning a price premium.

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. We would highlight that COLTENE Holding's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2022 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that COLTENE Holding is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that COLTENE Holding's revenues are expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for COLTENE Holding going out as far as 2024, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for COLTENE Holding 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.