Obrascón Huarte Lain, S.A. (BME:OHLA) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Shareholders might have noticed that Obrascón Huarte Lain, S.A. (BME:OHLA) filed its quarterly result this time last week. The early response was not positive, with shares down 2.8% to €0.49 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 2.0%to hit €638m. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. 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 Obrascón Huarte Lain

After the latest results, the consensus from Obrascón Huarte Lain's five analysts is for revenues of €3.19b in 2023, which would reflect a small 4.2% decline in sales compared to the last year of performance. Before this latest report, the consensus had been expecting revenues of €3.24b and €0.0037 per share in losses. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate, suggesting that revenues are what the market is focusing on after the latest results.

There's been no real change to the consensus price target of €0.92, with Obrascón Huarte Lain seemingly executing in line with expectations. 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 Obrascón Huarte Lain at €1.35 per share, while the most bearish prices it at €0.58. 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.

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. We would highlight that sales are expected to reverse, with a forecast 5.6% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 1.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.2% per year. It's pretty clear that Obrascón Huarte Lain's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Obrascón Huarte Lain's revenues are expected to perform worse than the wider industry. The consensus price target held steady at €0.92, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Obrascón Huarte Lain from its five analysts out to 2025, and you can see them free on our platform here.

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

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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.