Here's What Analysts Are Forecasting For SES-imagotag Société Anonyme (EPA:SESL) After Its Annual Results

Shareholders of SES-imagotag Société Anonyme (EPA:SESL) will be pleased this week, given that the stock price is up 11% to €45.00 following its latest yearly results. It was an okay result overall, with revenues coming in at €290m, roughly what the analysts had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for SES-imagotag Société Anonyme

Taking into account the latest results, the consensus forecast from SES-imagotag Société Anonyme's four analysts is for revenues of €391.0m in 2021, which would reflect a major 35% improvement in sales compared to the last 12 months. SES-imagotag Société Anonyme is also expected to turn profitable, with statutory earnings of €0.30 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €392.6m and earnings per share (EPS) of €0.10 in 2021. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the sizeable expansion in earnings per share expectations following these results.

There's been no major changes to the consensus price target of €46.50, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic SES-imagotag Société Anonyme analyst has a price target of €51.00 per share, while the most pessimistic values it at €38.00. This is a very narrow spread of estimates, implying either that SES-imagotag Société Anonyme is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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 SES-imagotag Société Anonyme's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 14% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 18% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SES-imagotag Société Anonyme to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around SES-imagotag Société Anonyme's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €46.50, with the latest estimates not enough to have an impact on their price targets.

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. At Simply Wall St, we have a full range of analyst estimates for SES-imagotag Société Anonyme going out to 2022, and you can see them free on our platform here..

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

If you’re looking to trade SES-imagotag Société Anonyme, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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