Compagnie Générale des Établissements Michelin Société en commandite par actions Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Compagnie Générale des Établissements Michelin Société en commandite par actions (EPA:ML) shareholders are probably feeling a little disappointed, since its shares fell 9.2% to €29.05 in the week after its latest yearly results. It was not a great result overall. While revenues of €27b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 11% to hit €2.62 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the most recent consensus for Compagnie Générale des Établissements Michelin Société en commandite par actions from twelve analysts is for revenues of €28.0b in 2025. If met, it would imply an okay 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 24% to €3.31. In the lead-up to this report, the analysts had been modelling revenues of €28.1b and earnings per share (EPS) of €3.33 in 2025. 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.

Check out our latest analysis for Compagnie Générale des Établissements Michelin Société en commandite par actions

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €36.33. 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. There are some variant perceptions on Compagnie Générale des Établissements Michelin Société en commandite par actions, with the most bullish analyst valuing it at €42.00 and the most bearish at €29.00 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Compagnie Générale des Établissements Michelin Société en commandite par actions' past performance and to peers in the same industry. We would highlight that Compagnie Générale des Établissements Michelin Société en commandite par actions' revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2025 being well below the historical 6.4% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Compagnie Générale des Établissements Michelin Société en commandite par actions is also expected to grow slower than other industry participants.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €36.33, 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 Compagnie Générale des Établissements Michelin Société en commandite par actions analysts - going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Compagnie Générale des Établissements Michelin Société en commandite par actions that 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.