Stock Analysis

Société BIC SA (EPA:BB) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

ENXTPA:BB
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Shareholders of Société BIC SA (EPA:BB) will be pleased this week, given that the stock price is up 15% to €68.20 following its latest quarterly results. Results overall were respectable, with statutory earnings of €5.30 per share roughly in line with what the analysts had forecast. Revenues of €540m came in 2.9% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are 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 analysts have changed their mind on Société BIC after the latest results.

See our latest analysis for Société BIC

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ENXTPA:BB Earnings and Revenue Growth October 27th 2024

Taking into account the latest results, the current consensus from Société BIC's five analysts is for revenues of €2.31b in 2025. This would reflect a credible 4.6% increase on its revenue over the past 12 months. Per-share earnings are expected to increase 5.7% to €5.90. In the lead-up to this report, the analysts had been modelling revenues of €2.31b and earnings per share (EPS) of €5.87 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €70.57. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Société BIC at €82.00 per share, while the most bearish prices it at €62.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. It's pretty clear that there is an expectation that Société BIC's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.7% growth on an annualised basis. This is compared to a historical growth rate of 5.8% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Société BIC.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Société BIC's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Société BIC. 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 Société BIC going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Société BIC , and understanding this should be part of your investment process.

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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.