The Equasens Société anonyme (EPA:EQS) First-Quarter Results Are Out And Analysts Have Published New Forecasts

It's been a pretty great week for Equasens Société anonyme (EPA:EQS) shareholders, with its shares surging 10% to €53.60 in the week since its latest first-quarter results. Revenues came in 4.8% below expectations, at €53m. Statutory earnings per share were relatively better off, with a per-share profit of €3.13 being roughly in line with analyst estimates. 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. 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 Equasens Société anonyme

Taking into account the latest results, the consensus forecast from Equasens Société anonyme's four analysts is for revenues of €223.6m in 2024. This reflects a reasonable 3.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 6.5% to €2.99. In the lead-up to this report, the analysts had been modelling revenues of €223.4m and earnings per share (EPS) of €2.99 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of €68.83, showing that the business is executing well and 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. Currently, the most bullish analyst values Equasens Société anonyme at €83.00 per share, while the most bearish prices it at €54.00. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Equasens Société anonyme's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2024 being well below the historical 8.2% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Equasens Société anonyme.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Equasens Société anonyme. Long-term earnings power is much more important than next year's profits. We have forecasts for Equasens Société anonyme going out to 2026, and you can see them free on our platform here.

You can also see whether Equasens Société anonyme is carrying too much debt, and whether its balance sheet is healthy, for free on our 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.