SQLI SA (EPA:SQI) Analysts Are Pretty Bullish On The Stock After Recent Results

Last week saw the newest full-year earnings release from SQLI SA (EPA:SQI), an important milestone in the company's journey to build a stronger business. It was an okay result overall, with revenues coming in at €251m, 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. We thought readers would find it interesting to see the analyst latest (statutory) post-earnings forecasts for next year.

View our latest analysis for SQLI

Taking into account the latest results, the consensus forecast from SQLI's sole analyst is for revenues of €263.0m in 2024. This reflects a credible 4.7% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analyst had been modelling revenues of €266.0m and earnings per share (EPS) of €2.56 in 2024. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

The average price target rose 37% to €44.30, with the analyst clearly having become more optimistic about SQLI'sprospects following these results.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analyst is definitely expecting SQLI's growth to accelerate, with the forecast 4.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.5% per annum 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 6.7% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, SQLI is expected to grow slower than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Fortunately, the analyst also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that SQLI's revenue is expected to perform worse 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.

One SQLI broker/analyst has provided estimates out to 2025, which can be seen for 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 SQLI , and understanding this should be part of your investment process.

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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.