Here's What Analysts Are Forecasting For Vidrala, S.A. (BME:VID) After Its Interim Results

The interim results for Vidrala, S.A. (BME:VID) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of €830m and statutory earnings per share of €7.23 both in line with analyst estimates, showing that Vidrala is executing in line with expectations. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Vidrala

Following the recent earnings report, the consensus from twelve analysts covering Vidrala is for revenues of €1.60b in 2024. This implies a small 5.4% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 22% to €8.48. In the lead-up to this report, the analysts had been modelling revenues of €1.60b and earnings per share (EPS) of €8.52 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €115. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Vidrala analyst has a price target of €130 per share, while the most pessimistic values it at €96.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 11% by the end of 2024. This indicates a significant reduction from annual growth of 13% 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 4.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Vidrala is expected to lag 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Vidrala's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Vidrala. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Vidrala analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Vidrala's balance sheet, and whether we think Vidrala is carrying too much debt, for free 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com