It's been a good week for Lanson-BCC (EPA:ALLAN) shareholders, because the company has just released its latest yearly results, and the shares gained 3.2% to €29.00. It was an okay report, and revenues came in at €271m, approximately in line with analyst estimates leading up to the results announcement. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Lanson-BCC's twin analysts is for revenues of €279.0m in 2022, which would reflect a credible 2.9% increase on its sales over the past 12 months. Statutory per share are forecast to be €2.77, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €292.3m and earnings per share (EPS) of €2.30 in 2022. Although the analysts have lowered their sales forecasts, they've also made a great increase in their earnings per share estimates, which implies there's been something of an uptick in sentiment following the latest results.
The consensus has made no major changes to the price target of €36.50, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Lanson-BCC's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 2.9% growth to the end of 2022 on an annualised basis. That is well above its historical decline of 1.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.2% annually for the foreseeable future. Although Lanson-BCC's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Lanson-BCC following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Still, earnings per share are more important to value creation for shareholders. The consensus price target held steady at €36.50, with the latest estimates not enough to have an impact on their price targets.
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. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.
You still need to take note of risks, for example - Lanson-BCC has 1 warning sign we think you should be aware of.
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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.