Analyst Estimates: Here's What Brokers Think Of Cementir Holding N.V. (BIT:CEM) After Its Interim Report

Investors in Cementir Holding N.V. (BIT:CEM) had a good week, as its shares rose 5.2% to close at €10.52 following the release of its half-year results. Results overall were respectable, with statutory earnings of €1.30 per share roughly in line with what the analysts had forecast. Revenues of €838m came in 4.4% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Cementir Holding

Following last week's earnings report, Cementir Holding's five analysts are forecasting 2024 revenues to be €1.69b, approximately in line with the last 12 months. Statutory earnings per share are expected to decline 12% to €1.18 in the same period. Before this earnings report, the analysts had been forecasting revenues of €1.70b and earnings per share (EPS) of €1.12 in 2024. So the consensus seems to have become somewhat more optimistic on Cementir Holding's earnings potential following these results.

There's been no major changes to the consensus price target of €12.02, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. The most optimistic Cementir Holding analyst has a price target of €13.50 per share, while the most pessimistic values it at €10.10. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Cementir Holding is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's pretty clear that there is an expectation that Cementir Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.4% growth on an annualised basis. This is compared to a historical growth rate of 9.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that Cementir Holding is also expected to grow slower than other industry participants.

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 Cementir Holding following these results. On the plus side, there were no major changes to revenue estimates; although 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 in mind, we wouldn't be too quick to come to a conclusion on Cementir Holding. Long-term earnings power is much more important than next year's profits. We have forecasts for Cementir Holding going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Cementir Holding that you need to be mindful 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.

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