Givaudan SA (VTX:GIVN) Interim Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, Givaudan SA (VTX:GIVN) recently reported its half-yearly numbers. Givaudan reported in line with analyst predictions, delivering revenues of CHF3.7b and statutory earnings per share of CHF96.47, suggesting the business is executing well and in line with its plan. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Givaudan after the latest results.

Check out our latest analysis for Givaudan

Taking into account the latest results, the consensus forecast from Givaudan's 17 analysts is for revenues of CHF7.33b in 2024. This reflects a credible 3.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 2.7% to CHF115. Before this earnings report, the analysts had been forecasting revenues of CHF7.31b and earnings per share (EPS) of CHF110 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at CHF4,085, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Givaudan, with the most bullish analyst valuing it at CHF4,852 and the most bearish at CHF3,000 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Givaudan's growth to accelerate, with the forecast 6.1% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.5% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 5.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Givaudan is expected to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Givaudan's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Givaudan going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Givaudan that you need to take into consideration.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com