Wacker Chemie AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

As you might know, Wacker Chemie AG (ETR:WCH) last week released its latest interim, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with €1.5b revenue coming in 3.5% lower than what the analystsexpected. Statutory earnings per share (EPS) of €1.47 missed the mark badly, arriving some 27% below what was expected. 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.

See our latest analysis for Wacker Chemie

After the latest results, the 14 analysts covering Wacker Chemie are now predicting revenues of €6.06b in 2024. If met, this would reflect an okay 3.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 76% to €4.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.10b and earnings per share (EPS) of €4.36 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €128. 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 Wacker Chemie, with the most bullish analyst valuing it at €178 and the most bearish at €100.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Wacker Chemie's revenue growth is expected to slow, with the forecast 6.8% annualised growth rate until the end of 2024 being well below the historical 9.3% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% per year. Even after the forecast slowdown in growth, it seems obvious that Wacker Chemie is also expected to grow faster than the wider industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €128, with the latest estimates not enough to have an impact on their price targets.

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. We have forecasts for Wacker Chemie going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Wacker Chemie has 2 warning signs (and 1 which is a bit unpleasant) we think you should know about.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com