VIB Vermögen AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

VIB Vermögen AG (ETR:VIH1) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €107m, statutory earnings missed forecasts by an incredible 53%, coming in at just €1.90 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on VIB Vermögen after the latest results.

Check out our latest analysis for VIB Vermögen

Following the latest results, VIB Vermögen's three analysts are now forecasting revenues of €116.0m in 2023. This would be a notable 8.6% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to shoot up 66% to €3.21. In the lead-up to this report, the analysts had been modelling revenues of €116.0m and earnings per share (EPS) of €3.75 in 2023. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at €43.33, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 VIB Vermögen, with the most bullish analyst valuing it at €56.00 and the most bearish at €29.00 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that VIB Vermögen's rate of growth is expected to accelerate meaningfully, with the forecast 8.6% annualised revenue growth to the end of 2023 noticeably faster than its historical growth of 5.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see a revenue decline of 13% annually. So it's clear with the acceleration in growth, VIB Vermögen is expected to grow meaningfully faster than 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 VIB Vermögen. On the plus side, they made no changes to their revenue estimates - and they expect sales to perform better than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 VIB Vermögen going out to 2024, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for VIB Vermögen (1 can't be ignored!) that you need to take into consideration.

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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.