Faes Farma, S.A. (BME:FAE) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

As you might know, Faes Farma, S.A. (BME:FAE) recently reported its third-quarter numbers. It was an okay result overall, with revenues coming in at €119m, roughly what the analysts had been expecting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Faes Farma after the latest results.

Check out our latest analysis for Faes Farma

Following last week's earnings report, Faes Farma's three analysts are forecasting 2025 revenues to be €499.0m, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 3.3% to €0.30 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €490.3m and earnings per share (EPS) of €0.30 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of €3.75, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Faes Farma, with the most bullish analyst valuing it at €4.30 and the most bearish at €3.20 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 0.8% annualised decline to the end of 2025. That is a notable change from historical growth of 5.4% 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 7.4% per year. It's pretty clear that Faes Farma's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Faes Farma following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Faes Farma's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €3.75, 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 Faes Farma analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Faes Farma (1 is significant!) that you need to take into consideration.

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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.