Earnings Miss: SCHOTT Pharma AG & Co. KGaA Missed EPS By 18% And Analysts Are Revising Their Forecasts

It's been a pretty great week for SCHOTT Pharma AG & Co. KGaA (ETR:1SXP) shareholders, with its shares surging 11% to €30.60 in the week since its latest second-quarter results. It was not a great result overall. While revenues of €234m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 18% to hit €0.17 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.

View our latest analysis for SCHOTT Pharma KGaA

Following the latest results, SCHOTT Pharma KGaA's ten analysts are now forecasting revenues of €978.2m in 2024. This would be an okay 6.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to step up 10% to €0.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of €976.5m and earnings per share (EPS) of €0.97 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of €34.53, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values SCHOTT Pharma KGaA at €44.00 per share, while the most bearish prices it at €30.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. It's clear from the latest estimates that SCHOTT Pharma KGaA's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 7.1% over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SCHOTT Pharma KGaA is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SCHOTT Pharma KGaA's earnings potential next year. 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 €34.53, 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 estimates - from multiple SCHOTT Pharma KGaA analysts - going out to 2026, and you can see them free on our platform here.

You can also see whether SCHOTT Pharma KGaA is carrying too much debt, and whether its balance sheet is healthy, for free 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.

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