Verallia Société Anonyme Just Missed EPS By 7.3%: Here's What Analysts Think Will Happen Next

Last week, you might have seen that Verallia Société Anonyme (EPA:VRLA) released its annual result to the market. The early response was not positive, with shares down 5.9% to €26.80 in the past week. Revenues of €3.5b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €2.00, missing estimates by 7.3%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Verallia Société Anonyme after the latest results.

See our latest analysis for Verallia Société Anonyme

Following last week's earnings report, Verallia Société Anonyme's nine analysts are forecasting 2025 revenues to be €3.45b, approximately in line with the last 12 months. Statutory earnings per share are predicted to ascend 18% to €2.36. Before this earnings report, the analysts had been forecasting revenues of €3.49b and earnings per share (EPS) of €2.50 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at €34.23, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Verallia Société Anonyme at €41.00 per share, while the most bearish prices it at €27.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Verallia Société Anonyme shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.07% annualised decline to the end of 2025. That is a notable change from historical growth of 9.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.7% per year. It's pretty clear that Verallia Société Anonyme's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Verallia Société Anonyme. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Verallia Société Anonyme's revenue is expected to 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Verallia Société Anonyme going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 3 warning signs for Verallia Société Anonyme that you need to be mindful of.

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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.