L'Air Liquide S.A. (EPA:AI) Just Released Its Half-Year Earnings: Here's What Analysts Think

Last week saw the newest interim earnings release from L'Air Liquide S.A. (EPA:AI), an important milestone in the company's journey to build a stronger business. L'Air Liquide reported €13b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €2.92 beat expectations, being 4.3% higher than what the analysts expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for L'Air Liquide

Taking into account the latest results, L'Air Liquide's 18 analysts currently expect revenues in 2024 to be €27.4b, approximately in line with the last 12 months. Per-share earnings are expected to swell 16% to €6.12. In the lead-up to this report, the analysts had been modelling revenues of €27.6b and earnings per share (EPS) of €6.07 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 €182, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values L'Air Liquide at €216 per share, while the most bearish prices it at €141. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that L'Air Liquide's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.6% growth on an annualised basis. This is compared to a historical growth rate of 7.7% 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 5.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that L'Air Liquide is also expected to grow slower than other industry participants.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that L'Air Liquide's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €182, 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 L'Air Liquide. Long-term earnings power is much more important than next year's profits. We have forecasts for L'Air Liquide going out to 2026, and you can see them free on our platform here.

You can also view our analysis of L'Air Liquide's balance sheet, and whether we think L'Air Liquide is carrying too much debt, for free on our platform here.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com