Iberpapel Gestión, S.A. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Iberpapel Gestión, S.A. (BME:IBG) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to €17.55 in the week after its latest full-year results. Sales of €237m surpassed estimates by 8.8%, although statutory earnings per share missed badly, coming in 24% below expectations at €0.86 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Iberpapel Gestión after the latest results.

View our latest analysis for Iberpapel Gestión

Following last week's earnings report, Iberpapel Gestión's dual analysts are forecasting 2022 revenues to be €233.0m, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 60% to €1.36. Before this earnings report, the analysts had been forecasting revenues of €236.0m and earnings per share (EPS) of €1.79 in 2022. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.

It might be a surprise to learn that the consensus price target was broadly unchanged at €24.82, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Iberpapel Gestión's past performance and to peers in the same industry. We would also point out that the forecast 1.8% annualised revenue decline to the end of 2022 is better than the historical trend, which saw revenues shrink 3.1% annually over the past five years Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 2.2% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Iberpapel Gestión to suffer worse than the wider industry.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at €24.82, 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. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.