Bachem Holding AG Just Missed EPS By 5.0%: Here's What Analysts Think Will Happen Next

It's been a mediocre week for Bachem Holding AG (VTX:BANB) shareholders, with the stock dropping 16% to CHF85.60 in the week since its latest yearly results. It looks like the results were a bit of a negative overall. While revenues of CHF532m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.0% to hit CHF1.37 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Bachem Holding

After the latest results, the four analysts covering Bachem Holding are now predicting revenues of CHF595.8m in 2023. If met, this would reflect a notable 12% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to grow 19% to CHF1.63. In the lead-up to this report, the analysts had been modelling revenues of CHF611.9m and earnings per share (EPS) of CHF1.73 in 2023. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the CHF88.20 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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 Bachem Holding, with the most bullish analyst valuing it at CHF100.00 and the most bearish at CHF71.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bachem Holding's past performance and to peers in the same industry. We would highlight that Bachem Holding's revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2023 being well below the historical 17% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 11% annually. Factoring in the forecast slowdown in growth, it looks like Bachem Holding is forecast to grow at about the same rate as the wider industry.

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. Sadly, they also downgraded their sales forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at CHF88.20, with the latest estimates not enough to have an impact on their price targets.

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 Bachem Holding going out to 2025, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Bachem Holding that we have uncovered.

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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.