B&S Group S.A. (AMS:BSGR) Analysts Are Pretty Bullish On The Stock After Recent Results

Investors in B&S Group S.A. (AMS:BSGR) had a good week, as its shares rose 3.0% to close at €4.85 following the release of its half-year results. It was a credible result overall, with revenues of €1.1b and statutory earnings per share of €0.40 both in line with analyst estimates, showing that B&S Group is executing in line with expectations. 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've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for B&S Group

Following the latest results, B&S Group's dual analysts are now forecasting revenues of €2.34b in 2024. This would be an okay 3.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to step up 19% to €0.56. Before this earnings report, the analysts had been forecasting revenues of €2.33b and earnings per share (EPS) of €0.58 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 7.5% to €7.13, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

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. The analysts are definitely expecting B&S Group's growth to accelerate, with the forecast 6.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect B&S Group to grow faster than 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 B&S Group. 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. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

It is also worth noting that we have found 2 warning signs for B&S Group (1 doesn't sit too well with us!) that you need to take into consideration.

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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.