Stock Analysis

Analyst Estimates: Here's What Brokers Think Of Viscofan, S.A. (BME:VIS) After Its Third-Quarter Report

BME:VIS
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It's been a good week for Viscofan, S.A. (BME:VIS) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.3% to €62.60. It was an okay result overall, with revenues coming in at €305m, roughly what the analysts had been expecting. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Viscofan

earnings-and-revenue-growth
BME:VIS Earnings and Revenue Growth October 26th 2024

Taking into account the latest results, the most recent consensus for Viscofan from nine analysts is for revenues of €1.28b in 2025. If met, it would imply a credible 6.5% increase on its revenue over the past 12 months. Per-share earnings are expected to climb 18% to €3.72. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.28b and earnings per share (EPS) of €3.67 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of €71.99, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Viscofan analyst has a price target of €80.20 per share, while the most pessimistic values it at €62.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Viscofan is an easy business to forecast or the the analysts are all using similar assumptions.

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 Viscofan's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2025 being well below the historical 9.0% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.7% per year. Even after the forecast slowdown in growth, it seems obvious that Viscofan is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €71.99, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Viscofan going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Viscofan that we have uncovered.

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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.