The Compagnie des Alpes SA (EPA:CDA) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

Shareholders might have noticed that Compagnie des Alpes SA (EPA:CDA) filed its quarterly result this time last week. The early response was not positive, with shares down 4.1% to €22.30 in the past week. The results were positive, with revenue coming in at €4.6m, beating analyst expectations by 2.0%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Compagnie des Alpes

Taking into account the latest results, the most recent consensus for Compagnie des Alpes from six analysts is for revenues of €239.3m in 2021 which, if met, would be a huge 35% increase on its sales over the past 12 months. Per-share losses are expected to explode, reaching €5.63 per share. Yet prior to the latest earnings, the analysts had been forecasting revenues of €237.4m and losses of €5.77 per share in 2021. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrade to loss per share forecasts for this year.

The average price target held steady at €22.50, seeming to indicate that business is performing in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Compagnie des Alpes analyst has a price target of €24.50 per share, while the most pessimistic values it at €20.80. This is a very narrow spread of estimates, implying either that Compagnie des Alpes is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Compagnie des Alpes' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 83% growth to the end of 2021 on an annualised basis. That is well above its historical decline of 5.4% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 12% per year. So it looks like Compagnie des Alpes is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. The consensus price target held steady at €22.50, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Compagnie des Alpes going out to 2023, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Compagnie des Alpes that you should be aware of.

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