Here's What Analysts Are Forecasting For Stemmer Imaging AG (ETR:S9I) After Its Full-Year Results

The full-year results for Stemmer Imaging AG (ETR:S9I) were released last week, making it a good time to revisit its performance. It was a pretty bad result overall; while revenues were in line with expectations at €105m, statutory losses exploded to €0.51 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Stemmer Imaging

Taking into account the latest results, the consensus forecast from Stemmer Imaging's four analysts is for revenues of €120.9m in 2021, which would reflect a solid 15% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Stemmer Imaging forecast to report a statutory profit of €0.54 per share. Before this earnings report, the analysts had been forecasting revenues of €121.4m and earnings per share (EPS) of €0.59 in 2021. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at €32.50, 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. Currently, the most bullish analyst values Stemmer Imaging at €34.00 per share, while the most bearish prices it at €28.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. The analysts are definitely expecting Stemmer Imaging's growth to accelerate, with the forecast 15% annualised growth to the end of 2021 ranking favourably alongside historical growth of 6.6% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 13% annually. Stemmer Imaging is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Stemmer Imaging. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €32.50, 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. We have forecasts for Stemmer Imaging going out to 2025, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Stemmer Imaging that you need to take into consideration.

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