Acerinox, S.A. (BME:ACX) Just Reported First-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

As you might know, Acerinox, S.A. (BME:ACX) recently reported its first-quarter numbers. Results look mixed - while revenue fell marginally short of analyst estimates at €1.5b, statutory earnings beat expectations 2.4%, with Acerinox reporting profits of €0.21 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Acerinox

Taking into account the latest results, the most recent consensus for Acerinox from twelve analysts is for revenues of €6.72b in 2024. If met, it would imply a satisfactory 6.4% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 113% to €1.24. Before this earnings report, the analysts had been forecasting revenues of €6.70b and earnings per share (EPS) of €1.36 in 2024. 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.

The consensus price target held steady at €13.72, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Acerinox, with the most bullish analyst valuing it at €17.75 and the most bearish at €8.20 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. We would highlight that Acerinox's revenue growth is expected to slow, with the forecast 8.6% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 1.5% annually. So it's pretty clear that, while Acerinox's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. 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 €13.72, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Acerinox going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Acerinox that you should be aware 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.