Hermès International Société en commandite par actions (EPA:RMS) Released Earnings Last Week And Analysts Lifted Their Price Target To €2,601

Investors in Hermès International Société en commandite par actions (EPA:RMS) had a good week, as its shares rose 2.1% to close at €2,809 following the release of its annual results. Hermès International Société en commandite par actions reported €15b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €43.87 beat expectations, being 3.1% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Hermès International Société en commandite par actions

Taking into account the latest results, the most recent consensus for Hermès International Société en commandite par actions from 17 analysts is for revenues of €17.0b in 2025. If met, it would imply a meaningful 12% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 8.3% to €47.59. In the lead-up to this report, the analysts had been modelling revenues of €16.7b and earnings per share (EPS) of €47.55 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.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.8% to €2,601. It looks as though they previously had some doubts over whether the business would live up to their expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Hermès International Société en commandite par actions at €3,205 per share, while the most bearish prices it at €1,480. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We would highlight that Hermès International Société en commandite par actions' revenue growth is expected to slow, with the forecast 12% annualised growth rate until the end of 2025 being well below the historical 19% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.4% per year. So it's pretty clear that, while Hermès International Société en commandite par actions' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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, 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 also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Hermès International Société en commandite par actions. 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 Hermès International Société en commandite par actions going out to 2027, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.