Elmos Semiconductor SE (ETR:ELG) Just Released Its First-Quarter Results And Analysts Are Updating Their Estimates

Shareholders of Elmos Semiconductor SE (ETR:ELG) will be pleased this week, given that the stock price is up 12% to €66.50 following its latest quarterly results. Results look mixed - while revenue fell marginally short of analyst estimates at €127m, statutory earnings were in line with expectations, at €7.51 per share. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Elmos Semiconductor's seven analysts are forecasting 2025 revenues to be €566.2m, approximately in line with the last 12 months. Statutory earnings per share are expected to crater 26% to €5.29 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €575.5m and earnings per share (EPS) of €5.48 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

View our latest analysis for Elmos Semiconductor

It might be a surprise to learn that the consensus price target was broadly unchanged at €84.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Elmos Semiconductor, with the most bullish analyst valuing it at €110 and the most bearish at €60.00 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 1.2% annualised decline to the end of 2025. That is a notable change from historical growth of 21% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 7.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Elmos Semiconductor is expected to lag 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 Elmos Semiconductor. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Elmos Semiconductor's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €84.00, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Elmos Semiconductor going out to 2027, and you can see them free on our platform here..

You can also see whether Elmos Semiconductor 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.