Earnings Miss: LEM Holding SA Missed EPS By 5.5% And Analysts Are Revising Their Forecasts

LEM Holding SA (VTX:LEHN) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. LEM Holding missed analyst forecasts, with revenues of CHF406m and statutory earnings per share (EPS) of CHF57.26, falling short by 2.2% and 5.5% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for LEM Holding

Taking into account the latest results, the current consensus, from the four analysts covering LEM Holding, is for revenues of CHF387.0m in 2025. This implies a measurable 4.6% reduction in LEM Holding's revenue over the past 12 months. Statutory earnings per share are forecast to dip 6.4% to CHF53.70 in the same period. Before this earnings report, the analysts had been forecasting revenues of CHF441.0m and earnings per share (EPS) of CHF69.93 in 2025. It looks like sentiment has declined substantially in the aftermath of these results, with a substantial drop in revenue estimates and a large cut to earnings per share numbers as well.

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. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values LEM Holding at CHF2,228 per share, while the most bearish prices it at CHF1,625. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. These estimates imply that revenue is expected to slow, with a forecast annualised 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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse 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 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.

Before you take the next step you should know about the 1 warning sign for LEM 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.