Revenue Miss: Bechtle AG Fell 5.1% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

Bechtle AG (ETR:BC8) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. Results look to have been somewhat negative - revenue fell 5.1% short of analyst estimates at €1.5b, and statutory earnings of €0.46 per share missed forecasts by 2.6%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bechtle after the latest results.

See our latest analysis for Bechtle

Taking into account the latest results, the most recent consensus for Bechtle from twelve analysts is for revenues of €6.79b in 2024. If met, it would imply a reasonable 6.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 7.0% to €2.27. In the lead-up to this report, the analysts had been modelling revenues of €6.93b and earnings per share (EPS) of €2.29 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.

There were no changes to revenue or earnings estimates or the price target of €53.82, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Bechtle, with the most bullish analyst valuing it at €64.00 and the most bearish at €38.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's clear from the latest estimates that Bechtle's rate of growth is expected to accelerate meaningfully, with the forecast 8.5% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.4% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 9.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Bechtle is expected to grow at about the same rate as the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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 held steady at €53.82, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bechtle analysts - going out to 2026, and you can see them free on our platform here.

It might also be worth considering whether Bechtle's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.