Clariant AG Just Missed EPS By 6.0%: Here's What Analysts Think Will Happen Next

It's been a sad week for Clariant AG (VTX:CLN), who've watched their investment drop 10% to CHF9.76 in the week since the company reported its annual result. It looks like the results were a bit of a negative overall. While revenues of CHF4.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 6.0% to hit CHF0.74 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Clariant

Taking into account the latest results, the current consensus from Clariant's 15 analysts is for revenues of CHF4.27b in 2025. This would reflect a satisfactory 2.8% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 24% to CHF0.92. In the lead-up to this report, the analysts had been modelling revenues of CHF4.30b and earnings per share (EPS) of CHF0.96 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at CHF14.01, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Clariant at CHF18.00 per share, while the most bearish prices it at CHF10.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The analysts are definitely expecting Clariant's growth to accelerate, with the forecast 2.8% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.9% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 4.6% annually. So it's clear that despite the acceleration in growth, Clariant is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Clariant. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Clariant. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Clariant 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 2 warning signs for Clariant 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.