Sartorius Stedim Biotech S.A. Just Missed EPS By 26%: Here's What Analysts Think Will Happen Next

Sartorius Stedim Biotech S.A. (EPA:DIM) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €667m, statutory earnings missed forecasts by an incredible 26%, coming in at just €0.58 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Sartorius Stedim Biotech

Taking into account the latest results, the consensus forecast from Sartorius Stedim Biotech's nine analysts is for revenues of €2.98b in 2024. This reflects a notable 9.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 38% to €3.61. Before this earnings report, the analysts had been forecasting revenues of €3.00b and earnings per share (EPS) of €3.69 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at €263, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Sartorius Stedim Biotech analyst has a price target of €360 per share, while the most pessimistic values it at €205. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Sartorius Stedim Biotech's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 13% growth on an annualised basis. This is compared to a historical growth rate of 18% over the past five years. Compare this to the 49 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it looks like Sartorius Stedim Biotech is forecast to grow at about the same rate as the wider industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €263, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Sartorius Stedim Biotech analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Sartorius Stedim Biotech has 4 warning signs we think you should be aware 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.