Here's What Analysts Are Forecasting For Bureau Veritas SA (EPA:BVI) After Its Interim Results

It's been a pretty great week for Bureau Veritas SA (EPA:BVI) shareholders, with its shares surging 10% to €28.86 in the week since its latest interim results. Results were roughly in line with estimates, with revenues of €3.0b and statutory earnings per share of €1.10. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Bureau Veritas

After the latest results, the 16 analysts covering Bureau Veritas are now predicting revenues of €6.22b in 2024. If met, this would reflect a reasonable 3.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 8.1% to €1.22. In the lead-up to this report, the analysts had been modelling revenues of €6.16b and earnings per share (EPS) of €1.23 in 2024. 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.

There were no changes to revenue or earnings estimates or the price target of €31.25, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Bureau Veritas analyst has a price target of €37.00 per share, while the most pessimistic values it at €26.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. The analysts are definitely expecting Bureau Veritas' growth to accelerate, with the forecast 7.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.1% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Bureau Veritas is expected to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €31.25, 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 Bureau Veritas. Long-term earnings power is much more important than next year's profits. We have forecasts for Bureau Veritas 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 2 warning signs with Bureau Veritas , and understanding them 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.

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