Cicor Technologies Ltd. (VTX:CICN) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

The half-year results for Cicor Technologies Ltd. (VTX:CICN) were released last week, making it a good time to revisit its performance. Cicor Technologies reported in line with analyst predictions, delivering revenues of CHF231m and statutory earnings per share of CHF1.37, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Cicor Technologies

Taking into account the latest results, the consensus forecast from Cicor Technologies' four analysts is for revenues of CHF484.1m in 2024. This reflects a decent 15% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 21% to CHF3.85. Before this earnings report, the analysts had been forecasting revenues of CHF482.3m and earnings per share (EPS) of CHF3.53 in 2024. So the consensus seems to have become somewhat more optimistic on Cicor Technologies' earnings potential following these results.

The consensus price target was unchanged at CHF71.15, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Cicor Technologies, with the most bullish analyst valuing it at CHF82.00 and the most bearish at CHF57.60 per share. 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 Cicor Technologies shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Cicor Technologies' rate of growth is expected to accelerate meaningfully, with the forecast 32% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 13% 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 9.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Cicor Technologies to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Cicor Technologies following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Cicor Technologies. Long-term earnings power is much more important than next year's profits. We have forecasts for Cicor Technologies going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Cicor Technologies you should know about.

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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.

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