Things Look Grim For BE Semiconductor Industries N.V. (AMS:BESI) After Today's Downgrade

The analysts covering BE Semiconductor Industries N.V. (AMS:BESI) delivered a dose of negativity to shareholders today, by making a substantial revision to their statutory forecasts for this year. Both revenue and earnings per share (EPS) estimates were cut sharply as analysts factored in the latest outlook for the business, concluding that they were too optimistic previously.

Following the downgrade, the latest consensus from BE Semiconductor Industries' 19 analysts is for revenues of €750m in 2025, which would reflect a huge 22% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to shoot up 23% to €2.73. Before this latest update, the analysts had been forecasting revenues of €838m and earnings per share (EPS) of €3.45 in 2025. Indeed, we can see that the analysts are a lot more bearish about BE Semiconductor Industries' prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for BE Semiconductor Industries

Despite the cuts to forecast earnings, there was no real change to the €143 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value.

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 BE Semiconductor Industries' growth to accelerate, with the forecast 22% annualised growth to the end of 2025 ranking favourably alongside historical growth of 9.6% 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 biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for BE Semiconductor Industries. Unfortunately, analysts also downgraded their revenue estimates, although our data indicates revenues are expected to perform better than the wider market. The lack of change in the price target is puzzling in light of the downgrade but, with a serious decline expected this year, we wouldn't be surprised if investors were a bit wary of BE Semiconductor Industries.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple BE Semiconductor Industries analysts - going out to 2027, and you can see them free on our platform here.

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