Earnings Beat: Altri, SGPS, S.A. (ELI:ALTR) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts

Investors in Altri, SGPS, S.A. (ELI:ALTR) had a good week, as its shares rose 6.8% to close at €5.08 following the release of its full-year results. It was an okay result overall, with revenues coming in at €788m, roughly what the analysts had been expecting. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Altri SGPS after the latest results.

Check out our latest analysis for Altri SGPS

Taking into account the latest results, the current consensus from Altri SGPS' five analysts is for revenues of €805.5m in 2024. This would reflect a credible 2.2% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 40% to €0.29. Yet prior to the latest earnings, the analysts had been anticipated revenues of €756.8m and earnings per share (EPS) of €0.23 in 2024. So it seems there's been a definite increase in optimism about Altri SGPS' future following the latest results, with a considerable lift to the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of €5.16, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. 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. There are some variant perceptions on Altri SGPS, with the most bullish analyst valuing it at €5.90 and the most bearish at €3.45 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

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. It's pretty clear that there is an expectation that Altri SGPS' revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.2% growth on an annualised basis. This is compared to a historical growth rate of 5.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that Altri SGPS is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Altri SGPS following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Altri SGPS analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with Altri SGPS (including 1 which is a bit unpleasant) .

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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.