Earnings Miss: VITA 34 AG Missed EPS By 29% And Analysts Are Revising Their Forecasts

VITA 34 AG (ETR:V3V) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with €20m revenue coming in 2.6% lower than what the analystsexpected. Statutory earnings per share (EPS) of €0.37 missed the mark badly, arriving some 29% below what was expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for VITA 34

Taking into account the latest results, the current consensus from VITA 34's dual analysts is for revenues of €22.0m in 2021, which would reflect a notable 9.6% increase on its sales over the past 12 months. Per-share earnings are expected to soar 27% to €0.47. In the lead-up to this report, the analysts had been modelling revenues of €22.3m and earnings per share (EPS) of €0.61 in 2021. So there's definitely been a decline in sentiment after the latest results, noting the pretty serious reduction to new EPS forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €21.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the VITA 34's past performance and to peers in the same industry. The analysts are definitely expecting VITA 34's growth to accelerate, with the forecast 9.6% annualised growth to the end of 2021 ranking favourably alongside historical growth of 6.5% per annum 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 4.8% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect VITA 34 to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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 in mind, we wouldn't be too quick to come to a conclusion on VITA 34. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

It is also worth noting that we have found 1 warning sign for VITA 34 that you need to take into consideration.

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