Analyst Estimates: Here's What Brokers Think Of Sika AG (VTX:SIKA) After Its Full-Year Report

The full-year results for Sika AG (VTX:SIKA) were released last week, making it a good time to revisit its performance. It was an okay result overall, with revenues coming in at CHF9.3b, roughly what the analysts had been expecting. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Sika

Taking into account the latest results, the current consensus from Sika's twelve analysts is for revenues of CHF10.6b in 2022, which would reflect a notable 15% increase on its sales over the past 12 months. Per-share earnings are expected to step up 16% to CHF7.91. In the lead-up to this report, the analysts had been modelling revenues of CHF10.0b and earnings per share (EPS) of CHF7.96 in 2022. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.

It may not be a surprise to see thatthe analysts have reconfirmed their price target of CHF412, implying that the uplift in sales is not expected to greatly contribute to Sika's valuation in the near term. 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. Currently, the most bullish analyst values Sika at CHF600 per share, while the most bearish prices it at CHF315. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that Sika's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 9.1% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.7% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Sika to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at CHF412, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Sika going out to 2024, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Sika , and understanding them should be part of your investment process.

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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.