Eurofins Scientific SE Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Last week saw the newest annual earnings release from Eurofins Scientific SE (EPA:ERF), an important milestone in the company's journey to build a stronger business. It looks like a credible result overall - although revenues of €5.4b were what the analysts expected, Eurofins Scientific surprised by delivering a (statutory) profit of €2.75 per share, an impressive 25% above what was forecast. 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.

See our latest analysis for Eurofins Scientific

Taking into account the latest results, the current consensus from Eurofins Scientific's 16 analysts is for revenues of €5.78b in 2021, which would reflect a credible 6.3% increase on its sales over the past 12 months. Statutory earnings per share are expected to reduce 7.7% to €2.51 in the same period. Before this earnings report, the analysts had been forecasting revenues of €5.79b and earnings per share (EPS) of €2.44 in 2021. So the consensus seems to have become somewhat more optimistic on Eurofins Scientific's earnings potential following these results.

There's been no major changes to the consensus price target of €79.25, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Eurofins Scientific at €95.50 per share, while the most bearish prices it at €38.20. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that Eurofins Scientific's revenue growth is expected to slow, with the forecast 6.3% annualised growth rate until the end of 2021 being well below the historical 19% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Eurofins Scientific.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Eurofins Scientific following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Eurofins Scientific's revenues are 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Eurofins Scientific going out to 2025, and you can see them free on our platform here..

It is also worth noting that we have found 3 warning signs for Eurofins Scientific (1 is potentially serious!) that you need to take into consideration.

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This article by Simply Wall St is general in nature. 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.
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