Séché Environnement SA Just Missed EPS By 9.2%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Séché Environnement SA (EPA:SCHP) filed its annual result this time last week. The early response was not positive, with shares down 7.9% to €105 in the past week. Revenues of €1.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €6.13, missing estimates by 9.2%. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Séché Environnement

Taking into account the latest results, the current consensus from Séché Environnement's three analysts is for revenues of €1.18b in 2024. This would reflect a notable 8.2% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 13% to €6.93. Before this earnings report, the analysts had been forecasting revenues of €1.18b and earnings per share (EPS) of €7.22 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at €119, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. Currently, the most bullish analyst values Séché Environnement at €135 per share, while the most bearish prices it at €102. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Séché Environnement is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Séché Environnement's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 8.2% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.6% annually. Even after the forecast slowdown in growth, it seems obvious that Séché Environnement is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 Séché Environnement. 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 Séché Environnement going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Séché Environnement you should know about.

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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.