Lisi S.A. (EPA:FII) Half-Yearly Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Lisi S.A. (EPA:FII) came out with its half-yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Lisi reported in line with analyst predictions, delivering revenues of €904m and statutory earnings per share of €0.81, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Lisi

After the latest results, the four analysts covering Lisi are now predicting revenues of €1.80b in 2024. If met, this would reflect a credible 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 18% to €1.44. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.79b and earnings per share (EPS) of €1.40 in 2024. 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 €29.13, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Lisi, with the most bullish analyst valuing it at €35.00 and the most bearish at €24.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lisi shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. For example, we noticed that Lisi's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 4.2% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 0.05% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.9% annually for the foreseeable future. Although Lisi's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader 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 Lisi following these results. 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 €29.13, 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. At Simply Wall St, we have a full range of analyst estimates for Lisi going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Lisi that we have uncovered.

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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.

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