Analysts Are Updating Their Fugro N.V. (AMS:FUR) Estimates After Its Half-Year Results

Fugro N.V. (AMS:FUR) shareholders are probably feeling a little disappointed, since its shares fell 9.6% to €22.12 in the week after its latest half-yearly results. Results look mixed - while revenue fell marginally short of analyst estimates at €1.1b, statutory earnings were in line with expectations, at €2.20 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Fugro

Taking into account the latest results, the current consensus from Fugro's six analysts is for revenues of €2.39b in 2024. This would reflect a modest 5.9% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to sink 17% to €2.18 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €2.40b and earnings per share (EPS) of €2.20 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €30.43. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Fugro, with the most bullish analyst valuing it at €33.00 and the most bearish at €27.60 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Fugro's growth to accelerate, with the forecast 12% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.8% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Fugro to grow faster than the wider industry.

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, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €30.43, with the latest estimates not enough to have an impact on their price targets.

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

You can also view our analysis of Fugro's balance sheet, and whether we think Fugro 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