Evotec SE (ETR:EVT) Just Reported Earnings, And Analysts Cut Their Target Price

Evotec SE (ETR:EVT) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of €185m missing analyst predictions by 3.6%. Worse, the business reported a statutory loss of €0.22 per share, much larger than the analysts had forecast prior to the result. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Evotec

Taking into account the latest results, the consensus forecast from Evotec's ten analysts is for revenues of €910.2m in 2025. This reflects a decent 17% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 79% to €0.21. Before this earnings announcement, the analysts had been modelling revenues of €910.1m and losses of €0.20 per share in 2025. So it's pretty clear consensus is mixed on Evotec after the new consensus numbers; while the analysts held their revenue numbers steady, they also administered a modest increase to per-share loss expectations.

The consensus price target fell 22% to €10.65per share, with the analysts clearly concerned by ballooning losses. 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 Evotec analyst has a price target of €22.00 per share, while the most pessimistic values it at €4.00. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on 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 can infer from the latest estimates that forecasts expect a continuation of Evotec'shistorical trends, as the 13% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 11% annually. It's clear that while Evotec's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Evotec. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Evotec's future valuation.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Evotec going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Evotec that we have uncovered.

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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.