Results: Allane SE Exceeded Expectations And The Consensus Has Updated Its Estimates

The full-year results for Allane SE (FRA:LNSX) were released last week, making it a good time to revisit its performance. It looks to have been a bit of a mixed result. While revenues of €630m fell 13% short of what the analysts had predicted, statutory earnings per share (EPS) of €0.43 exceeded expectations by 7.5%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Allane

Taking into account the latest results, Allane's twin analysts currently expect revenues in 2024 to be €639.0m, approximately in line with the last 12 months. Statutory earnings per share are forecast to plummet 28% to €0.31 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €782.9m and earnings per share (EPS) of €0.34 in 2024. It looks like sentiment has fallen somewhat in the aftermath of these results, with a substantial drop in revenue estimates and a small dip in earnings per share numbers as well.

It'll come as no surprise then, to learn that the analysts have cut their price target 8.2% to €11.25.

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. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2024. That would be a definite improvement, given that the past five years have seen revenue shrink 3.9% annually. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 5.5% annually. Although Allane's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Allane. 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 3 warning signs for Allane that you need to be mindful of.

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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.