Analyst Estimates: Here's What Brokers Think Of Lectra SA (EPA:LSS) After Its Interim Report

Last week, you might have seen that Lectra SA (EPA:LSS) released its interim result to the market. The early response was not positive, with shares down 7.3% to €26.80 in the past week. Results were roughly in line with estimates, with revenues of €262m and statutory earnings per share of €0.89. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Lectra after the latest results.

Check out our latest analysis for Lectra

After the latest results, the four analysts covering Lectra are now predicting revenues of €544.1m in 2024. If met, this would reflect a meaningful 8.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 35% to €1.14. Before this earnings report, the analysts had been forecasting revenues of €548.4m and earnings per share (EPS) of €1.24 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at €34.58, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Lectra analyst has a price target of €41.00 per share, while the most pessimistic values it at €30.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Lectra shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lectra's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Lectra'shistorical trends, as the 18% annualised revenue growth to the end of 2024 is roughly in line with the 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 8.8% per year. So although Lectra is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts 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 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 €34.58, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Lectra. Long-term earnings power is much more important than next year's profits. We have forecasts for Lectra going out to 2026, and you can see them free on our platform here.

You can also view our analysis of Lectra's balance sheet, and whether we think Lectra is carrying too much debt, for free on our platform here.

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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