Earnings Update: Here's Why Analysts Just Lifted Their BE Semiconductor Industries N.V. (AMS:BESI) Price Target To €76.36

Investors in BE Semiconductor Industries N.V. (AMS:BESI) had a good week, as its shares rose 4.4% to close at €70.90 following the release of its annual results. It was a credible result overall, with revenues of €723m and statutory earnings per share of €2.90 both in line with analyst estimates, showing that BE Semiconductor Industries 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for BE Semiconductor Industries

Taking into account the latest results, the current consensus, from the nine analysts covering BE Semiconductor Industries, is for revenues of €619.6m in 2023, which would reflect a considerable 14% reduction in BE Semiconductor Industries' sales over the past 12 months. Statutory earnings per share are forecast to dive 23% to €2.32 in the same period. Before this earnings report, the analysts had been forecasting revenues of €606.0m and earnings per share (EPS) of €2.45 in 2023. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

Curiously, the consensus price target rose 10% to €76.36. We can only conclude that the forecast revenue growth is expected to offset the impact of the expected fall in earnings. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values BE Semiconductor Industries at €94.00 per share, while the most bearish prices it at €55.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 14% by the end of 2023. This indicates a significant reduction from annual growth of 8.6% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 12% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - BE Semiconductor Industries is expected to lag the wider 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. They also upgraded their revenue estimates for next year, even though sales are expected to grow slower 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.

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 2025, and you can see them free on our platform here..

Plus, you should also learn about the 3 warning signs we've spotted with BE Semiconductor Industries (including 1 which is concerning) .

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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.