Earnings Report: Romande Energie Holding SA Missed Revenue Estimates By 14%

It's been a good week for Romande Energie Holding SA (VTX:REHN) shareholders, because the company has just released its latest half-year results, and the shares gained 3.9% to CHF42.70. Revenues were CHF355m, 14% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of CHF0.95 being in line with what the analysts anticipated. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the three analysts covering Romande Energie Holding provided consensus estimates of CHF751.3m revenue in 2025, which would reflect a noticeable 5.5% decline over the past 12 months. Romande Energie Holding is also expected to turn profitable, with statutory earnings of CHF2.44 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF814.8m and earnings per share (EPS) of CHF2.51 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

View our latest analysis for Romande Energie Holding

The analysts made no major changes to their price target of CHF46.07, suggesting the downgrades are not expected to have a long-term impact on Romande Energie Holding's valuation. 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 Romande Energie Holding at CHF55.00 per share, while the most bearish prices it at CHF41.20. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Romande Energie Holding's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 11% by the end of 2025. This indicates a significant reduction from annual growth of 11% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 2.7% annually for the foreseeable future. It's pretty clear that Romande Energie Holding's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Romande Energie Holding. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CHF46.07, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for Romande Energie Holding 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 Romande Energie 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.