Elis SA (EPA:ELIS) Half-Year Results Just Came Out: Here's What Analysts Are Forecasting For This Year

The half-yearly results for Elis SA (EPA:ELIS) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of €1.8b and statutory earnings per share of €0.51 both in line with analyst estimates, showing that Elis is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Elis

Taking into account the latest results, the consensus forecast from Elis' eleven analysts is for revenues of €3.75b in 2022, which would reflect a notable 8.3% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 57% to €1.04. Before this earnings report, the analysts had been forecasting revenues of €3.67b and earnings per share (EPS) of €0.97 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of €19.16, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Elis, with the most bullish analyst valuing it at €23.00 and the most bearish at €17.00 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Elis' growth to accelerate, with the forecast 17% annualised growth to the end of 2022 ranking favourably alongside historical growth of 7.0% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Elis is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Elis' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at €19.16, 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 Elis. 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 Elis going out to 2024, and you can see them free on our platform here..

Before you take the next step you should know about the 3 warning signs for Elis 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.