Basler Aktiengesellschaft (ETR:BSL) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?

There's been a notable change in appetite for Basler Aktiengesellschaft (ETR:BSL) shares in the week since its annual report, with the stock down 13% to €10.80. Revenues of €203m were in line with expectations, although statutory losses per share were €0.45, some 13% smaller than was expected. 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.

Check out our latest analysis for Basler

Taking into account the latest results, the most recent consensus for Basler from five analysts is for revenues of €210.4m in 2024. If met, it would imply an okay 3.6% increase on its revenue over the past 12 months. Earnings are expected to improve, with Basler forecast to report a statutory profit of €0.32 per share. Before this earnings report, the analysts had been forecasting revenues of €216.1m and earnings per share (EPS) of €0.28 in 2024. Although the analysts have lowered their revenue forecasts, they've also made a decent improvement in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.

The consensus has made no major changes to the price target of €15.43, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Basler, with the most bullish analyst valuing it at €25.00 and the most bearish at €10.00 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Basler'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 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 10% per year. Factoring in the forecast slowdown in growth, it seems obvious that Basler is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Basler following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. With that said, earnings are more important to the long-term value of the business. The consensus price target held steady at €15.43, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Basler. 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 Basler going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Basler .

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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.