Analysts Are Updating Their Oeneo SA (EPA:SBT) Estimates After Its Full-Year Results

Oeneo SA (EPA:SBT) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Oeneo reported €348m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.63 beat expectations, being 4.3% higher than what the analysts expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Oeneo

Taking into account the latest results, the consensus forecast from Oeneo's three analysts is for revenues of €355.5m in 2024. This reflects a credible 2.1% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be €0.64, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €363.7m and earnings per share (EPS) of €0.66 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the €15.07 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. There are some variant perceptions on Oeneo, with the most bullish analyst valuing it at €15.50 and the most bearish at €14.70 per share. This is a very narrow spread of estimates, implying either that Oeneo is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Oeneo's revenue growth is expected to slow, with the forecast 2.1% annualised growth rate until the end of 2024 being well below the historical 6.4% 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 3.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that Oeneo is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €15.07, 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. We have estimates - from multiple Oeneo analysts - going out to 2025, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Oeneo that we have uncovered.

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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.