€2.95: That's What Analysts Think Xilam Animation (EPA:XIL) Is Worth After Its Latest Results

Xilam Animation (EPA:XIL) shareholders are probably feeling a little disappointed, since its shares fell 8.5% to €2.05 in the week after its latest annual results. The result was fairly weak overall, with revenues of €27m being 4.8% less than what the analysts had been modelling. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the consensus from Xilam Animation's dual analysts is for revenues of €16.9m in 2025, which would reflect a sizeable 36% decline in revenue compared to the last year of performance. Yet prior to the latest earnings, the analysts had been forecasting revenues of €17.8m and losses of €0.95 per share in 2025. So we can see that while the consensus made a minor downgrade to revenue estimates, it no longer provides an earnings per share estimate. This suggests that the market is now more focused on revenue after the latest result.

View our latest analysis for Xilam Animation

The average price target fell 9.2% to €2.95, withthe analysts clearly having become less optimistic about Xilam Animation'sprospects following its latest earnings.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 36% annualised decline to the end of 2025. That is a notable change from historical growth of 8.4% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Xilam Animation is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their revenue estimates for next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

At least one of Xilam Animation's dual analysts has provided estimates out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for Xilam Animation (1 doesn't sit too well with us!) that you need to take into consideration.

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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.