EMS-CHEMIE HOLDING AG (VTX:EMSN) Just Released Its Half-Yearly Earnings: Here's What Analysts Think

EMS-CHEMIE HOLDING AG (VTX:EMSN) shareholders are probably feeling a little disappointed, since its shares fell 3.0% to CHF689 in the week after its latest half-year results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.9%to hit CHF1.3b. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for EMS-CHEMIE HOLDING

After the latest results, the seven analysts covering EMS-CHEMIE HOLDING are now predicting revenues of CHF2.47b in 2022. If met, this would reflect a meaningful 8.3% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be CHF23.61, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CHF2.47b and earnings per share (EPS) of CHF24.13 in 2022. 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 CHF925, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 EMS-CHEMIE HOLDING analyst has a price target of CHF1,001 per share, while the most pessimistic values it at CHF740. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EMS-CHEMIE HOLDING's past performance and to peers in the same industry. We would highlight that EMS-CHEMIE HOLDING's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2022 being well below the historical 25% growth over the last year. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 8.6% per year. Even after the forecast slowdown in growth, it seems obvious that EMS-CHEMIE HOLDING is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster 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.

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 EMS-CHEMIE HOLDING going out to 2024, and you can see them free on our platform here.

Even so, be aware that EMS-CHEMIE 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. 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.