Earnings Update: COLTENE Holding AG (VTX:CLTN) Just Reported Its Full-Year Results And Analysts Are Updating Their Forecasts

Investors in COLTENE Holding AG (VTX:CLTN) had a good week, as its shares rose 8.3% to close at CHF59.80 following the release of its annual results. It was an okay report, and revenues came in at CHF243m, approximately in line with analyst estimates leading up to the results announcement. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on COLTENE Holding after the latest results.

See our latest analysis for COLTENE Holding

Taking into account the latest results, COLTENE Holding's sole analyst currently expect revenues in 2024 to be CHF245.2m, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 69% to CHF3.38. Before this earnings report, the analyst had been forecasting revenues of CHF240.7m and earnings per share (EPS) of CHF3.29 in 2024. So the consensus seems to have become somewhat more optimistic on COLTENE Holding's earnings potential following these results.

The consensus price target was unchanged at CHF62.50, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that COLTENE Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 1.0% growth on an annualised basis. This is compared to a historical growth rate of 2.0% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.0% per year. 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 biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around COLTENE Holding's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with COLTENE Holding .

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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.