The WashTec AG (ETR:WSU) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

WashTec AG (ETR:WSU) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. WashTec missed revenue estimates by 2.7%, coming in at€119m, although statutory earnings per share (EPS) of €0.56 beat expectations, coming in 3.7% ahead of analyst estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for WashTec

Taking into account the latest results, the current consensus from WashTec's four analysts is for revenues of €482.4m in 2024. This would reflect a reasonable 3.3% increase on its revenue over the past 12 months. Per-share earnings are expected to accumulate 3.0% to €2.19. Before this earnings report, the analysts had been forecasting revenues of €493.5m and earnings per share (EPS) of €2.18 in 2024. The consensus seems maybe a little more pessimistic, trimming their revenue forecasts after the latest results even though there was no change to its EPS estimates.

The average price target was steady at €49.13even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values WashTec at €53.00 per share, while the most bearish prices it at €43.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that WashTec's rate of growth is expected to accelerate meaningfully, with the forecast 6.7% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.2% 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 4.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect WashTec to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also downgraded WashTec's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at €49.13, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for WashTec going out to 2026, and you can see them free on our platform here..

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for WashTec that you should be aware of.

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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.