Analysts Have Made A Financial Statement On COFACE SA's (EPA:COFA) Full-Year Report

As you might know, COFACE SA (EPA:COFA) recently reported its annual numbers. It was an okay result overall, with revenues coming in at €1.9b, roughly what the analysts had been expecting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on COFACE after the latest results.

View our latest analysis for COFACE

After the latest results, the twin analysts covering COFACE are now predicting revenues of €1.96b in 2025. If met, this would reflect a credible 3.4% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €1.76, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €1.95b and earnings per share (EPS) of €1.68 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

There's been no major changes to the consensus price target of €16.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

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 COFACE's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2025 being well below the historical 6.2% 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 6.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that COFACE is also expected to grow slower than other industry participants.

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 COFACE following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that COFACE's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €16.25, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on COFACE. Long-term earnings power is much more important than next year's profits. We have analyst estimates for COFACE going out as far as 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - COFACE has 2 warning signs (and 1 which is significant) we think you should know about.

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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.