Earnings Update: Medartis Holding AG (VTX:MED) Just Reported And Analysts Are Trimming Their Forecasts

It's been a pretty great week for Medartis Holding AG (VTX:MED) shareholders, with its shares surging 11% to CHF83.10 in the week since its latest interim results. Medartis Holding reported in line with analyst predictions, delivering revenues of CHF123m and statutory earnings per share of CHF0.28, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Following the latest results, Medartis Holding's three analysts are now forecasting revenues of CHF245.9m in 2025. This would be a modest 4.0% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Medartis Holding forecast to report a statutory profit of CHF0.61 per share. In the lead-up to this report, the analysts had been modelling revenues of CHF270.5m and earnings per share (EPS) of CHF0.92 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

Check out our latest analysis for Medartis Holding

Despite the cuts to forecast earnings, there was no real change to the CHF91.63 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Medartis Holding, with the most bullish analyst valuing it at CHF98.90 and the most bearish at CHF86.00 per share. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Medartis Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 8.2% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this to the 10 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.6% per year. Factoring in the forecast slowdown in growth, it looks like Medartis Holding is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Medartis Holding. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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.

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 Medartis Holding going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Medartis Holding that we have uncovered.

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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.