Ariston Holding N.V. Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Investors in Ariston Holding N.V. (BIT:ARIS) had a good week, as its shares rose 3.6% to close at €5.69 following the release of its annual results. Ariston Holding beat revenue expectations by 2.2%, at €3.2b. Statutory earnings per share (EPS) came in at €0.51, some 8.5% short of analyst estimates. 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.

Check out our latest analysis for Ariston Holding

Taking into account the latest results, the eight analysts covering Ariston Holding provided consensus estimates of €2.98b revenue in 2024, which would reflect a small 5.4% decline over the past 12 months. Statutory earnings per share are forecast to reduce 2.7% to €0.53 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.06b and earnings per share (EPS) of €0.56 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of €7.81, suggesting the downgrades are not expected to have a long-term impact on Ariston Holding's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Ariston Holding, with the most bullish analyst valuing it at €9.00 and the most bearish at €5.70 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 5.4% by the end of 2024. This indicates a significant reduction from annual growth of 20% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ariston Holding is expected to lag the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ariston Holding. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will 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 Ariston Holding going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Ariston Holding you should know about.

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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.