SKAN Group AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in SKAN Group AG (VTX:SKAN) had a good week, as its shares rose 3.2% to close at CHF85.10 following the release of its yearly results. It was not a great result overall. While revenues of CHF320m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 14% to hit CHF1.17 per share. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for SKAN Group

Following the latest results, SKAN Group's three analysts are now forecasting revenues of CHF389.8m in 2024. This would be a sizeable 22% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 54% to CHF1.81. In the lead-up to this report, the analysts had been modelling revenues of CHF384.1m and earnings per share (EPS) of CHF1.84 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target fell 9.1% to CHF91.33, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic SKAN Group analyst has a price target of CHF108 per share, while the most pessimistic values it at CHF74.00. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that SKAN Group's revenue growth is expected to slow, with the forecast 22% annualised growth rate until the end of 2024 being well below the historical 40% 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 9.9% annually. Even after the forecast slowdown in growth, it seems obvious that SKAN Group is also expected 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of SKAN Group's future valuation.

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. We have forecasts for SKAN Group going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for SKAN Group 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.