Rexel S.A. (EPA:RXL) Just Released Its Interim Earnings: Here's What Analysts Think

It's been a good week for Rexel S.A. (EPA:RXL) shareholders, because the company has just released its latest interim results, and the shares gained 2.1% to €27.41. It was a credible result overall, with revenues of €9.8b and statutory earnings per share of €1.13 both in line with analyst estimates, showing that Rexel is executing in line with expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

Taking into account the latest results, Rexel's ten analysts currently expect revenues in 2025 to be €19.4b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 149% to €2.09. Yet prior to the latest earnings, the analysts had been anticipated revenues of €19.2b and earnings per share (EPS) of €2.05 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.

View our latest analysis for Rexel

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €27.95. 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. The most optimistic Rexel analyst has a price target of €33.00 per share, while the most pessimistic values it at €18.00. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.4% by the end of 2025. This indicates a significant reduction from annual growth of 9.6% 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 3.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Rexel is expected to lag the wider industry.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Rexel's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €27.95, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Rexel. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Rexel going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 4 warning signs for Rexel that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.