Ariston Holding N.V. (BIT:ARIS) Just Reported, And Analysts Assigned A €5.57 Price Target

It's been a good week for Ariston Holding N.V. (BIT:ARIS) shareholders, because the company has just released its latest half-yearly results, and the shares gained 3.2% to €3.80. Results look mixed - while revenue fell marginally short of analyst estimates at €1.3b, statutory earnings were in line with expectations, at €0.51 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Ariston Holding

Taking into account the latest results, the current consensus, from the eight analysts covering Ariston Holding, is for revenues of €2.63b in 2024. This implies an uncomfortable 9.3% reduction in Ariston Holding's revenue over the past 12 months. Statutory earnings per share are predicted to soar 172% to €0.45. In the lead-up to this report, the analysts had been modelling revenues of €2.77b and earnings per share (EPS) of €0.42 in 2024. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.

The analysts have cut their price target 7.0% to €5.57per share, suggesting that the declining revenue was a more crucial indicator than the expected improvement in earnings. 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. The most optimistic Ariston Holding analyst has a price target of €7.00 per share, while the most pessimistic values it at €4.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 18% by the end of 2024. This indicates a significant reduction from annual growth of 17% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 6.2% annually for the foreseeable future. It's pretty clear that Ariston Holding's revenues are expected to perform substantially worse than 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 Ariston Holding following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. With that said, earnings are more important to the long-term value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Ariston Holding going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Ariston Holding has 4 warning signs 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.

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