Befesa S.A. (ETR:BFSA) Half-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

As you might know, Befesa S.A. (ETR:BFSA) recently reported its interim numbers. Results look mixed - while revenue fell marginally short of analyst estimates at €602m, statutory earnings were in line with expectations, at €1.27 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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After the latest results, the ten analysts covering Befesa are now predicting revenues of €1.28b in 2025. If met, this would reflect a credible 5.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 19% to €2.10. Before this earnings report, the analysts had been forecasting revenues of €1.32b and earnings per share (EPS) of €2.05 in 2025. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

View our latest analysis for Befesa

There's been no real change to the average price target of €35.40, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. 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. There are some variant perceptions on Befesa, with the most bullish analyst valuing it at €42.00 and the most bearish at €28.00 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 Befesa shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Befesa's past performance and to peers in the same industry. We would highlight that Befesa's revenue growth is expected to slow, with the forecast 11% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% annually. Even after the forecast slowdown in growth, it seems obvious that Befesa is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Befesa following these results. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will 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 €35.40, 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 Befesa going out to 2027, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Befesa , and understanding these should be part of your investment process.

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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.