The EssilorLuxottica Société anonyme (EPA:EL) Half-Yearly Results Are Out And Analysts Have Published New Forecasts

Investors in EssilorLuxottica Société anonyme (EPA:EL) had a good week, as its shares rose 5.4% to close at €261 following the release of its half-yearly results. Results were roughly in line with estimates, with revenues of €14b and statutory earnings per share of €5.13. 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 EssilorLuxottica Société anonyme after the latest results.

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Taking into account the latest results, EssilorLuxottica Société anonyme's 17 analysts currently expect revenues in 2025 to be €27.7b, approximately in line with the last 12 months. Per-share earnings are expected to increase 2.3% to €5.28. Yet prior to the latest earnings, the analysts had been anticipated revenues of €27.7b and earnings per share (EPS) of €5.81 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

View our latest analysis for EssilorLuxottica Société anonyme

It might be a surprise to learn that the consensus price target was broadly unchanged at €261, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on EssilorLuxottica Société anonyme, with the most bullish analyst valuing it at €302 and the most bearish at €180 per share. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EssilorLuxottica Société anonyme's past performance and to peers in the same industry. It's pretty clear that there is an expectation that EssilorLuxottica Société anonyme's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 3.1% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that EssilorLuxottica Société anonyme is also expected to grow slower than other industry participants.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for EssilorLuxottica Société anonyme. 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 €261, 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 EssilorLuxottica Société anonyme going out to 2027, and you can see them free on our platform here.

It might also be worth considering whether EssilorLuxottica Société anonyme's debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.