LACROIX Group SA Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders might have noticed that LACROIX Group SA (EPA:LACR) filed its yearly result this time last week. The early response was not positive, with shares down 5.9% to €24.00 in the past week. Statutory earnings per share fell badly short of expectations, coming in at €0.91, some 54% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €761m. 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 LACROIX Group after the latest results.

See our latest analysis for LACROIX Group

Taking into account the latest results, the current consensus, from the twin analysts covering LACROIX Group, is for revenues of €726.9m in 2024. This implies a small 4.5% reduction in LACROIX Group's revenue over the past 12 months. Statutory earnings per share are predicted to jump 133% to €2.13. Before this earnings report, the analysts had been forecasting revenues of €755.8m and earnings per share (EPS) of €2.74 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

The consensus price target fell 6.5% to €29.00, with the weaker earnings outlook clearly leading valuation estimates.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 4.5% by the end of 2024. This indicates a significant reduction from annual growth of 11% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 20% per year. It's pretty clear that LACROIX Group's revenues are expected to perform substantially worse 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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LACROIX Group's future valuation.

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 LACROIX Group going out as far as 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with LACROIX Group (at least 1 which is a bit unpleasant) , and understanding these 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.