Analysts Have Made A Financial Statement On Salzgitter AG's (ETR:SZG) Annual Report

Salzgitter AG (ETR:SZG) shareholders are probably feeling a little disappointed, since its shares fell 4.6% to €22.84 in the week after its latest yearly results. It was a credible result overall, with revenues of €11b and statutory earnings per share of €3.70 both in line with analyst estimates, showing that Salzgitter is executing in line with expectations. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Salzgitter

After the latest results, the consensus from Salzgitter's nine analysts is for revenues of €10.2b in 2024, which would reflect a discernible 5.2% decline in revenue compared to the last year of performance. Statutory per-share earnings are expected to be €3.68, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €10.2b and earnings per share (EPS) of €3.96 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at €27.46, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Salzgitter, with the most bullish analyst valuing it at €45.00 and the most bearish at €21.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.2% by the end of 2024. This indicates a significant reduction from annual growth of 8.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Salzgitter is expected to lag 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 Salzgitter. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Salzgitter's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €27.46, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Salzgitter analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with Salzgitter .

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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.