Vidrala, S.A. (BME:VID) Just Released Its Annual Results And Analysts Are Updating Their Estimates

Vidrala, S.A. (BME:VID) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results overall were respectable, with statutory earnings of €7.23 per share roughly in line with what the analysts had forecast. Revenues of €1.6b came in 2.4% ahead of analyst predictions. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Vidrala

Taking into account the latest results, Vidrala's nine analysts currently expect revenues in 2024 to be €1.60b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 8.6% to €7.85. Before this earnings report, the analysts had been forecasting revenues of €1.61b and earnings per share (EPS) of €7.70 in 2024. So the consensus seems to have become somewhat more optimistic on Vidrala's earnings potential following these results.

There's been no major changes to the consensus price target of €110, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Vidrala analyst has a price target of €125 per share, while the most pessimistic values it at €96.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vidrala's past performance and to peers in the same industry. We would highlight that Vidrala's revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2024 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.4% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Vidrala.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vidrala's earnings potential next year. 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. The consensus price target held steady at €110, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Vidrala analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Vidrala has 1 warning sign we think 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.