Faes Farma, S.A. (BME:FAE) Just Released Its Full-Year Earnings: Here's What Analysts Think

Faes Farma, S.A. (BME:FAE) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. The results were positive, with revenue coming in at €473m, beating analyst expectations by 3.5%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Faes Farma

Taking into account the latest results, Faes Farma's four analysts currently expect revenues in 2024 to be €465.0m, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €477.0m and earnings per share (EPS) of €0.29 in 2024. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

We'd also point out that thatthe analysts have made no major changes to their price target of €3.71. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Faes Farma at €4.33 per share, while the most bearish prices it at €3.20. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 revenue is expected to reverse, with a forecast 1.7% annualised decline to the end of 2024. That is a notable change from historical growth of 6.2% 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 6.2% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Faes Farma is expected to lag the wider industry.

The Bottom Line

The clear low-light was that the analysts cut their forecast revenue estimates for Faes Farma next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. The consensus price target held steady at €3.71, with the latest estimates not enough to have an impact on their price targets.

At least one of Faes Farma's four analysts has provided estimates out to 2026, which can be seen for free on our platform here.

You still need to take note of risks, for example - Faes Farma has 3 warning signs (and 1 which can't be ignored) we think you should know about.

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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.