Earnings Miss: Bertrandt Aktiengesellschaft Missed EPS By 7.1% And Analysts Are Revising Their Forecasts

Last week saw the newest first-quarter earnings release from Bertrandt Aktiengesellschaft (ETR:BDT), an important milestone in the company's journey to build a stronger business. It was a pretty mixed result, with revenues beating expectations to hit €308m. Statutory earnings fell 7.1% short of analyst forecasts, reaching €0.78 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bertrandt after the latest results.

View our latest analysis for Bertrandt

Taking into account the latest results, the current consensus from Bertrandt's four analysts is for revenues of €1.24b in 2024. This would reflect a reasonable 4.7% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 26% to €3.99. Before this earnings report, the analysts had been forecasting revenues of €1.24b and earnings per share (EPS) of €4.44 in 2024. 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 minor downgrade to their earnings per share forecasts.

The consensus price target held steady at €64.50, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Bertrandt analyst has a price target of €84.00 per share, while the most pessimistic values it at €45.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Bertrandt's growth to accelerate, with the forecast 6.3% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.6% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bertrandt is expected to grow at about the same rate as 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 Bertrandt. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 forecasts for Bertrandt 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 1 warning sign for Bertrandt 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.