€10.00: That's What Analysts Think Schweizer Electronic AG (ETR:SCE) Is Worth After Its Latest Results

The full-year results for Schweizer Electronic AG (ETR:SCE) were released last week, making it a good time to revisit its performance. The statutory results were mixed overall, with revenues of €123m in line with analyst forecasts, but losses of €6.95 per share, some 7.9% larger than the analyst was predicting. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Schweizer Electronic after the latest results.

Check out our latest analysis for Schweizer Electronic

After the latest results, the one analyst covering Schweizer Electronic are now predicting revenues of €133.1m in 2022. If met, this would reflect a meaningful 8.5% improvement in sales compared to the last 12 months. Losses are expected to be contained, narrowing 15% from last year to €5.89. Yet prior to the latest earnings, the analyst had been forecasting revenues of €136.2m and losses of €5.83 per share in 2022.

The analyst has cut their price target 29% to €10.00per share, signalling that the declining revenue and ongoing losses are contributing to the lower valuation.

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. One thing stands out from these estimates, which is that Schweizer Electronic is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.5% annualised growth until the end of 2022. If achieved, this would be a much better result than the 2.2% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 11% annually for the foreseeable future. Although Schweizer Electronic's revenues are expected to improve, it seems that the analyst is still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 analyst estimates for Schweizer Electronic going out as far as 2024, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Schweizer Electronic you should be aware of, and 1 of them doesn't sit too well with us.

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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.