Earnings Report: Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt. Missed Revenue Estimates By 9.3%

Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt. (BUSE:RICHTER) last week reported its latest first-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Results look mixed - while revenue fell marginally short of analyst estimates at Ft203b, statutory earnings were in line with expectations, at Ft860 per share. 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. 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 most recent consensus for Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt from eight analysts is for revenues of Ft843.5b in 2024. If met, it would imply a credible 4.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 4.1% to Ft1,310. Before this earnings report, the analysts had been forecasting revenues of Ft835.2b and earnings per share (EPS) of Ft1,314 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of Ft11,692, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt at Ft12,990 per share, while the most bearish prices it at Ft9,435. 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 Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt shareholders.

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. We would highlight that Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt's revenue growth is expected to slow, with the forecast 5.3% annualised growth rate until the end of 2024 being well below the historical 12% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt going out to 2026, and you can see them free on our platform here..

You still need to take note of risks, for example - Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt has 1 warning sign we think you should be aware of.

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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.