Streamwide S.A. (EPA:ALSTW) Analysts Are Pretty Bullish On The Stock After Recent Results

Last week, you might have seen that Streamwide S.A. (EPA:ALSTW) released its full-year result to the market. The early response was not positive, with shares down 4.8% to €35.60 in the past week. It was an okay result overall, with revenues coming in at €14m, roughly what the analyst had been expecting. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst is expecting for next year.

See our latest analysis for Streamwide

Taking into account the latest results, the consensus forecast from Streamwide's one analyst is for revenues of €16.5m in 2021, which would reflect a notable 18% improvement in sales compared to the last 12 months. Per-share earnings are expected to leap 99% to €1.37. In the lead-up to this report, the analyst had been modelling revenues of €16.3m and earnings per share (EPS) of €1.41 in 2021. 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 analyst did make a minor downgrade to their earnings per share forecasts.

Althoughthe analyst has revised their earnings forecasts for next year, they've also lifted the consensus price target 27% to €33.00, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. It's clear from the latest estimates that Streamwide's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 8.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 8.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Streamwide is expected to grow much faster than its industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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. We have analyst estimates for Streamwide going out as far as 2023, and you can see them free on our platform here.

Before you take the next step you should know about the 2 warning signs for Streamwide (1 shouldn't be ignored!) that we have uncovered.

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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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