Analysts Have Made A Financial Statement On EuroGroup Laminations S.p.A.'s (BIT:EGLA) Half-Year Report

Shareholders might have noticed that EuroGroup Laminations S.p.A. (BIT:EGLA) filed its half-year result this time last week. The early response was not positive, with shares down 2.3% to €3.35 in the past week. EuroGroup Laminations reported in line with analyst predictions, delivering revenues of €422m and statutory earnings per share of €0.21, suggesting the business is executing well and in line with its plan. 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 EuroGroup Laminations after the latest results.

View our latest analysis for EuroGroup Laminations

Taking into account the latest results, the current consensus from EuroGroup Laminations' five analysts is for revenues of €899.2m in 2024. This would reflect a meaningful 11% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 20% to €0.24. Before this earnings report, the analysts had been forecasting revenues of €925.7m and earnings per share (EPS) of €0.26 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the €5.22 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on EuroGroup Laminations, with the most bullish analyst valuing it at €6.00 and the most bearish at €4.50 per share. This is a very narrow spread of estimates, implying either that EuroGroup Laminations is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the EuroGroup Laminations' past performance and to peers in the same industry. For example, we noticed that EuroGroup Laminations' rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 23% growth to the end of 2024 on an annualised basis. That is well above its historical decline of 8.2% a year over the past year. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 9.4% per year. So it looks like EuroGroup Laminations is expected to grow faster than its competitors, at least for a while.

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. They also downgraded EuroGroup Laminations' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target held steady at €5.22, 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. We have estimates - from multiple EuroGroup Laminations analysts - going out to 2026, and you can see them free on our platform here.

You can also view our analysis of EuroGroup Laminations' balance sheet, and whether we think EuroGroup Laminations is carrying too much debt, for free on our platform here.

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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.

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