Analysts Have Made A Financial Statement On Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt.'s (BUSE:RICHTER) Annual Report

The annual results for Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt. (BUSE:RICHTER) were released last week, making it a good time to revisit its performance. Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt reported in line with analyst predictions, delivering revenues of Ft805b and statutory earnings per share of Ft860, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt

Taking into account the latest results, the consensus forecast from Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt's seven analysts is for revenues of Ft876.8b in 2024. This reflects a meaningful 8.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 31% to Ft1,138. Yet prior to the latest earnings, the analysts had been anticipated revenues of Ft826.1b and earnings per share (EPS) of Ft1,106 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of Ft11,482, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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. There are some variant perceptions on Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt, with the most bullish analyst valuing it at Ft13,400 and the most bearish at Ft9,435 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. We would highlight that Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt's revenue growth is expected to slow, with the forecast 8.9% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 7.6% annually. Factoring in the forecast slowdown in growth, it looks like Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt will grow in line with the overall industry. The consensus price target held steady at Ft11,482, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt going out to 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 1 warning sign with Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt , and understanding it 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.