The Hermès International Société en commandite par actions (EPA:RMS) Interim Results Are Out And Analysts Have Published New Forecasts

Hermès International Société en commandite par actions (EPA:RMS) came out with its interim results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It looks like the results were a bit of a negative overall. While revenues of €7.5b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.8% to hit €22.58 per share. 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 Hermès International Société en commandite par actions after the latest results.

Check out our latest analysis for Hermès International Société en commandite par actions

Taking into account the latest results, the consensus forecast from Hermès International Société en commandite par actions' 18 analysts is for revenues of €15.0b in 2024. This reflects a credible 5.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.0% to €44.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of €15.1b and earnings per share (EPS) of €44.48 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €2,274. 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 Hermès International Société en commandite par actions at €2,800 per share, while the most bearish prices it at €1,480. 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to 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 2024 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) 7.7% 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 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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Hermès International Société en commandite par actions going out to 2026, and you can see them free on our platform here.

We also provide an overview of the Hermès International Société en commandite par actions Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.

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