AlzChem Group AG Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Investors in AlzChem Group AG (ETR:ACT) had a good week, as its shares rose 4.0% to close at €156 following the release of its first-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at €145m, statutory earnings were in line with expectations, at €5.31 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, AlzChem Group's four analysts currently expect revenues in 2025 to be €576.1m, approximately in line with the last 12 months. Statutory earnings per share are predicted to rise 3.4% to €5.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of €579.0m and earnings per share (EPS) of €5.82 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

See our latest analysis for AlzChem Group

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 8.7% to €135. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic AlzChem Group analyst has a price target of €185 per share, while the most pessimistic values it at €97.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that AlzChem Group's revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2025 being well below the historical 9.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.4% annually. Factoring in the forecast slowdown in growth, it seems obvious that AlzChem Group is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for AlzChem Group going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.