Elior Group SA (EPA:ELIOR) Just Released Its Half-Yearly Results And Analysts Are Updating Their Estimates

Investors in Elior Group SA (EPA:ELIOR) had a good week, as its shares rose 2.1% to close at €2.79 following the release of its half-yearly results. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Following last week's earnings report, Elior Group's eight analysts are forecasting 2025 revenues to be €6.24b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 1,668% to €0.07. In the lead-up to this report, the analysts had been modelling revenues of €6.29b and earnings per share (EPS) of €0.065 in 2025. So the consensus seems to have become somewhat more optimistic on Elior Group's earnings potential following these results.

See our latest analysis for Elior Group

There's been no major changes to the consensus price target of €3.29, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Elior Group at €4.50 per share, while the most bearish prices it at €2.60. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Elior Group shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Elior Group's past performance and to peers in the same industry. We would highlight that Elior Group's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Elior Group is also expected to grow slower than other industry participants.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Elior Group's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €3.29, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Elior Group going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Elior Group (at least 1 which doesn't sit too well with us) , and understanding them should be part of your investment process.

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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.