Euroapi S.A. (EPA:EAPI) Just Released Its Interim Results And Analysts Are Updating Their Estimates

It's been a mediocre week for Euroapi S.A. (EPA:EAPI) shareholders, with the stock dropping 12% to €2.79 in the week since its latest half-yearly results. The result was fairly weak overall, with revenues of €412m being 3.8% less than what the analysts had been modelling. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the recent earnings report, the consensus from five analysts covering Euroapi is for revenues of €863.5m in 2025. This implies a noticeable 2.2% decline in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 53% to €0.62. Before this earnings announcement, the analysts had been modelling revenues of €903.5m and losses of €0.76 per share in 2025. Although the revenue estimates have fallen somewhat, Euroapi'sfuture looks a little different to the past, with a cut to the loss per share forecasts in particular.

See our latest analysis for Euroapi

The consensus price target was broadly unchanged at €3.08, implying that the business is performing roughly in line with expectations, despite adjustments to both revenue and earnings estimates. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Euroapi analyst has a price target of €3.50 per share, while the most pessimistic values it at €2.50. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. One more thing stood out to us about these estimates, and it's the idea that Euroapi's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 4.3% to the end of 2025. This tops off a historical decline of 2.5% a year over the past three years. Compare this against analyst estimates for companies in the broader industry, which suggest that revenues (in aggregate) are expected to grow 4.4% annually. So it's pretty clear that, while it does have declining revenues, the analysts also expect Euroapi to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Euroapi. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Euroapi analysts - going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Euroapi , and understanding this should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.