Analysts Have Made A Financial Statement On Elmos Semiconductor SE's (ETR:ELG) First-Quarter Report

It's been a good week for Elmos Semiconductor SE (ETR:ELG) shareholders, because the company has just released its latest first-quarter results, and the shares gained 2.5% to €77.10. Elmos Semiconductor reported in line with analyst predictions, delivering revenues of €137m and statutory earnings per share of €5.79, suggesting the business is executing well and in line with its plan. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Elmos Semiconductor

Taking into account the latest results, the consensus forecast from Elmos Semiconductor's five analysts is for revenues of €596.7m in 2024. This reflects a reasonable 2.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 4.4% to €5.76 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €596.4m and earnings per share (EPS) of €5.69 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €92.40. 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 Elmos Semiconductor, with the most bullish analyst valuing it at €110 and the most bearish at €75.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. We would highlight that Elmos Semiconductor's revenue growth is expected to slow, with the forecast 3.6% annualised growth rate until the end of 2024 being well below the historical 20% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 8.3% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Elmos Semiconductor.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Elmos Semiconductor. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Elmos Semiconductor going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Elmos Semiconductor that you should be aware of.

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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.