Analysts Have Made A Financial Statement On Sika AG's (VTX:SIKA) Third-Quarter Report

Last week, you might have seen that Sika AG (VTX:SIKA) released its third-quarter result to the market. The early response was not positive, with shares down 3.1% to CHF247 in the past week. Results were roughly in line with estimates, with revenues of CHF3.1b and statutory earnings per share of CHF6.65. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Sika

Taking into account the latest results, the consensus forecast from Sika's 19 analysts is for revenues of CHF12.4b in 2025. This reflects an okay 6.2% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CHF12.4b and earnings per share (EPS) of CHF8.90 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

There's been no real change to the consensus price target of CHF295, with Sika seemingly executing in line with expectations. 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. The most optimistic Sika analyst has a price target of CHF370 per share, while the most pessimistic values it at CHF220. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Sika shareholders.

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. It's pretty clear that there is an expectation that Sika's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 9.3% over the past five years. Compare this to the 5 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 5.5% per year. So it's pretty clear that, while Sika's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at CHF295, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Sika from its 19 analysts out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Sika that you should be aware of.

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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.