Straumann Holding AG Just Recorded A 22% EPS Beat: Here's What Analysts Are Forecasting Next

It's been a good week for Straumann Holding AG (VTX:STMN) shareholders, because the company has just released its latest full-year results, and the shares gained 2.4% to CHF1,129. It looks like a credible result overall - although revenues of CHF1.4b were what the analysts expected, Straumann Holding surprised by delivering a (statutory) profit of CHF5.73 per share, an impressive 22% above what was forecast. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Straumann Holding

Taking into account the latest results, the most recent consensus for Straumann Holding from 17 analysts is for revenues of CHF1.68b in 2021 which, if met, would be a decent 18% increase on its sales over the past 12 months. Statutory earnings per share are predicted to soar 284% to CHF22.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF1.67b and earnings per share (EPS) of CHF21.22 in 2021. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 6.5% to CHF1,038, suggesting that higher earnings estimates flow through to the stock's valuation as well. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Straumann Holding analyst has a price target of CHF1,348 per share, while the most pessimistic values it at CHF730. 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 Straumann Holding shareholders.

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 clear from the latest estimates that Straumann Holding's rate of growth is expected to accelerate meaningfully, with the forecast 18% revenue growth noticeably faster than its historical growth of 13%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Straumann Holding is expected to grow much faster than its 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 Straumann Holding following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Straumann Holding going out to 2025, and you can see them free on our platform here.

Even so, be aware that Straumann Holding is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. 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.
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