Gurit Holding AG Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week, you might have seen that Gurit Holding AG (VTX:GUR) released its yearly result to the market. The early response was not positive, with shares down 2.4% to CHF2,245 in the past week. The result was positive overall - although revenues of CHF577m were in line with what the analysts predicted, Gurit Holding surprised by delivering a statutory profit of CHF100 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Gurit Holding

Following last week's earnings report, Gurit Holding's five analysts are forecasting 2021 revenues to be CHF587.0m, approximately in line with the last 12 months. Statutory earnings per share are expected to dip 5.0% to CHF94.34 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF615.7m and earnings per share (EPS) of CHF99.77 in 2021. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CHF2,265 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Gurit Holding, with the most bullish analyst valuing it at CHF2,910 and the most bearish at CHF1,500 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We would highlight that Gurit Holding's revenue growth is expected to slow, with the forecast 1.8% annualised growth rate until the end of 2021 being well below the historical 13% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% per year. Factoring in the forecast slowdown in growth, it seems obvious that Gurit Holding is also expected to grow slower than other industry participants.

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. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at CHF2,265, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Gurit Holding going out to 2025, and you can see them free on our platform here..

Even so, be aware that Gurit 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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