Elmos Semiconductor SE (ETR:ELG) Just Released Its Third-Quarter Earnings: Here's What Analysts Think

Shareholders of Elmos Semiconductor SE (ETR:ELG) will be pleased this week, given that the stock price is up 11% to €62.30 following its latest third-quarter results. Elmos Semiconductor reported in line with analyst predictions, delivering revenues of €157m and statutory earnings per share of €1.49, suggesting the business is executing well and in line with its plan. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Elmos Semiconductor

Following last week's earnings report, Elmos Semiconductor's six analysts are forecasting 2025 revenues to be €596.6m, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 4.7% to €5.68 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €612.2m and earnings per share (EPS) of €5.85 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.

Despite the cuts to forecast earnings, there was no real change to the €85.37 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Elmos Semiconductor at €100.00 per share, while the most bearish prices it at €75.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Elmos Semiconductor's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.6% growth on an annualised basis. This is compared to a historical growth rate of 21% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Elmos Semiconductor is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Elmos Semiconductor going out to 2026, 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.