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

It's been a good week for Vetropack Holding AG (VTX:VETN) shareholders, because the company has just released its latest yearly results, and the shares gained 2.5% to CHF60.80. It looks like a credible result overall - although revenues of CHF669m were in line with what the analysts predicted, Vetropack Holding surprised by delivering a statutory profit of CHF4.10 per share, a notable 19% above expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Vetropack Holding after the latest results.

See our latest analysis for Vetropack Holding

Following the latest results, Vetropack Holding's five analysts are now forecasting revenues of CHF732.2m in 2021. This would be a solid 9.5% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to sink 18% to CHF3.36 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF730.4m and earnings per share (EPS) of CHF3.30 in 2021. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of CHF66.50, showing that the business is executing well and 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. Currently, the most bullish analyst values Vetropack Holding at CHF70.00 per share, while the most bearish prices it at CHF60.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Vetropack Holding's rate of growth is expected to accelerate meaningfully, with the forecast 9.5% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 4.2% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Vetropack Holding is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CHF66.50, 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. We have forecasts for Vetropack Holding going out to 2025, and you can see them free on our platform here.

Even so, be aware that Vetropack 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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