Analysts Just Slashed Their LEM Holding SA (VTX:LEHN) EPS Numbers

Today is shaping up negative for LEM Holding SA (VTX:LEHN) shareholders, with the analysts delivering a substantial negative revision to this year's forecasts. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting the analysts have soured majorly on the business.

After the downgrade, the consensus from LEM Holding's four analysts is for revenues of CHF387m in 2025, which would reflect a small 4.6% decline in sales compared to the last year of performance. Statutory earnings per share are anticipated to shrink 6.4% to CHF53.70 in the same period. Previously, the analysts had been modelling revenues of CHF441m and earnings per share (EPS) of CHF69.93 in 2025. Indeed, we can see that the analysts are a lot more bearish about LEM Holding's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for LEM Holding

Despite the cuts to forecast earnings, there was no real change to the CHF2,032 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 4.6% by the end of 2025. This indicates a significant reduction from annual growth of 8.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.2% per year. It's pretty clear that LEM Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of LEM Holding.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple LEM Holding analysts - going out to 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.