Analysts Are Updating Their Euroapi S.A. (EPA:EAPI) Estimates After Its Half-Yearly Results

It's been a good week for Euroapi S.A. (EPA:EAPI) shareholders, because the company has just released its latest interim results, and the shares gained 5.3% to €11.40. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Euroapi

Following the latest results, Euroapi's six analysts are now forecasting revenues of €1.04b in 2023. This would be a credible 5.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 136% to €0.77. Before this earnings report, the analysts had been forecasting revenues of €1.04b and earnings per share (EPS) of €0.48 in 2023. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the massive increase in earnings per share expectations following these results.

There's been no major changes to the consensus price target of €15.10, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Euroapi, with the most bullish analyst valuing it at €16.90 and the most bearish at €13.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Euroapi's past performance and to peers in the same industry. The analysts are definitely expecting Euroapi's growth to accelerate, with the forecast 11% annualised growth to the end of 2023 ranking favourably alongside historical growth of 5.3% per annum over the past year. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Euroapi is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Euroapi's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €15.10, 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 forecasts for Euroapi going out to 2025, 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 1 warning sign for Euroapi 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.