BE Semiconductor Industries N.V. (AMS:BESI) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

There's been a notable change in appetite for BE Semiconductor Industries N.V. (AMS:BESI) shares in the week since its quarterly report, with the stock down 16% to €123. BE Semiconductor Industries reported €151m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.53 beat expectations, being 3.1% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for BE Semiconductor Industries

Taking into account the latest results, the consensus forecast from BE Semiconductor Industries' 19 analysts is for revenues of €658.9m in 2024. This reflects a meaningful 14% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 14% to €2.46. In the lead-up to this report, the analysts had been modelling revenues of €698.1m and earnings per share (EPS) of €2.63 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the €153 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. 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. The most optimistic BE Semiconductor Industries analyst has a price target of €200 per share, while the most pessimistic values it at €108. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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 29% annualised growth to the end of 2024 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 15% 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 biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for BE Semiconductor Industries. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. 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..

You should always think about risks though. Case in point, we've spotted 1 warning sign for BE Semiconductor Industries you should be aware 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