BE Semiconductor Industries N.V. (AMS:BESI) Analysts Are Pretty Bullish On The Stock After Recent Results

Last week, you might have seen that BE Semiconductor Industries N.V. (AMS:BESI) released its annual result to the market. The early response was not positive, with shares down 5.2% to €153 in the past week. The result was positive overall - although revenues of €579m were in line with what the analysts predicted, BE Semiconductor Industries surprised by delivering a statutory profit of €2.23 per share, modestly greater than expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for BE Semiconductor Industries

Following the latest results, BE Semiconductor Industries' 16 analysts are now forecasting revenues of €780.5m in 2024. This would be a major 35% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 38% to €3.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of €773.0m and earnings per share (EPS) of €3.32 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 12% to €152, suggesting that these impacts are not expected to weigh on the stock's value in the long term. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic BE Semiconductor Industries analyst has a price target of €200 per share, while the most pessimistic values it at €108. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

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. The analysts are definitely expecting BE Semiconductor Industries' growth to accelerate, with the forecast 35% annualised growth to the end of 2024 ranking favourably alongside historical growth of 12% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BE Semiconductor Industries is expected to grow much faster than its industry.

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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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 Simply Wall St, we have a full range of analyst estimates for BE Semiconductor Industries going out to 2026, and you can see them free on our platform here..

We also provide an overview of the BE Semiconductor Industries Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.