Earnings Update: Brenntag SE (ETR:BNR) Just Reported Its First-Quarter Results And Analysts Are Updating Their Forecasts

As you might know, Brenntag SE (ETR:BNR) recently reported its first-quarter numbers. Results look mixed - while revenue fell marginally short of analyst estimates at €4.1b, statutory earnings were in line with expectations, at €3.71 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in Brenntag. Read for free now.

Following last week's earnings report, Brenntag's 15 analysts are forecasting 2025 revenues to be €16.6b, approximately in line with the last 12 months. Per-share earnings are expected to step up 13% to €4.13. Yet prior to the latest earnings, the analysts had been anticipated revenues of €16.8b and earnings per share (EPS) of €4.25 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

View our latest analysis for Brenntag

It might be a surprise to learn that the consensus price target was broadly unchanged at €72.43, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Brenntag, with the most bullish analyst valuing it at €98.00 and the most bearish at €58.00 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 Brenntag shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Brenntag's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Brenntag's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.8% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Brenntag.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Brenntag. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Brenntag's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €72.43, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Brenntag going out to 2027, and you can see them free on our platform here..

Even so, be aware that Brenntag is showing 1 warning sign in our investment analysis , you should know about...

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.