It's been a good week for Ibersol, S.G.P.S., S.A. (ELI:IBS) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.2% to €6.40. Results were roughly in line with estimates, with revenues of €106m and statutory earnings per share of €0.93. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the two analysts covering Ibersol S.G.P.S are now predicting revenues of €478.0m in 2022. If met, this would reflect a notable 17% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to crater 72% to €0.30 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €452.9m and earnings per share (EPS) of €0.64 in 2022. So it's pretty clear the analysts have mixed opinions on Ibersol S.G.P.S after the latest results; even though they upped their revenue numbers, it came at the cost of a pretty serious reduction to per-share earnings expectations.
The consensus price target was unchanged at €9.30, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts.
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. One thing stands out from these estimates, which is that Ibersol S.G.P.S is forecast to grow faster in the future than it has in the past, with revenues expected to display 23% annualised growth until the end of 2022. If achieved, this would be a much better result than the 5.3% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 12% per year. Not only are Ibersol S.G.P.S' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at €9.30, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
We don't want to rain on the parade too much, but we did also find 3 warning signs for Ibersol S.G.P.S (1 is significant!) that you need to be mindful 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.