Earnings Release: Here's Why Analysts Cut Their Catering International & Services Société Anonyme (EPA:ALCIS) Price Target To €12.10

Investors in Catering International & Services Société Anonyme (EPA:ALCIS) had a good week, as its shares rose 7.8% to close at €9.96 following the release of its annual results. It was an okay result overall, with revenues coming in at €326m, roughly what the analyst had been expecting. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Catering International & Services Société Anonyme after the latest results.

See our latest analysis for Catering International & Services Société Anonyme

Taking into account the latest results, the most recent consensus for Catering International & Services Société Anonyme from sole analyst is for revenues of €358.5m in 2024. If met, it would imply a meaningful 9.9% increase on its revenue over the past 12 months. In the lead-up to this report, the analyst had been modelling revenues of €351.3m and earnings per share (EPS) of €1.09 in 2024. What's really interesting is that while the consensus made a small increase to revenue estimates, it no longer provides an earnings per share estimate. This suggests that revenues are now the focus of the business after this latest result.

The average price target fell 16% to €12.10, withthe analyst clearly having become less optimistic about Catering International & Services Société Anonyme'sprospects following its latest earnings.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Catering International & Services Société Anonyme's past performance and to peers in the same industry. The analyst is definitely expecting Catering International & Services Société Anonyme's growth to accelerate, with the forecast 9.9% annualised growth to the end of 2024 ranking favourably alongside historical growth of 7.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Catering International & Services Société Anonyme is expected to grow much faster than its industry.

The Bottom Line

The highlight for us was that the analyst increased their revenue forecasts for Catering International & Services Société Anonyme next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Catering International & Services Société Anonyme's future valuation.

One Catering International & Services Société Anonyme broker/analyst has provided estimates out to 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Catering International & Services Société Anonyme 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.