Results: Eurofins Scientific SE Beat Earnings Expectations And Analysts Now Have New Forecasts

It's been a pretty great week for Eurofins Scientific SE (EPA:ERF) shareholders, with its shares surging 11% to €53.64 in the week since its latest interim results. Eurofins Scientific reported €3.4b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €1.13 beat expectations, being 7.6% higher than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Eurofins Scientific

Taking into account the latest results, the most recent consensus for Eurofins Scientific from 16 analysts is for revenues of €7.06b in 2024. If met, it would imply a credible 4.9% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 32% to €2.24. Yet prior to the latest earnings, the analysts had been anticipated revenues of €7.06b and earnings per share (EPS) of €2.17 in 2024. 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 €59.35, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Eurofins Scientific analyst has a price target of €83.00 per share, while the most pessimistic values it at €44.00. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Eurofins Scientific'shistorical trends, as the 10% annualised revenue growth to the end of 2024 is roughly in line with the 8.8% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 10% per year. So although Eurofins Scientific is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.

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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €59.35, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Eurofins Scientific going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Eurofins Scientific has 2 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.

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