Earnings Report: Altri, SGPS, S.A. Missed Revenue Estimates By 6.3%

Altri, SGPS, S.A. (ELI:ALTR) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to €5.03 in the week after its latest third-quarter results. Results look mixed - while revenue fell marginally short of analyst estimates at €207m, statutory earnings were in line with expectations, at €0.21 per share. 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.

Check out our latest analysis for Altri SGPS

Taking into account the latest results, the most recent consensus for Altri SGPS from four analysts is for revenues of €863.8m in 2025. If met, it would imply a satisfactory 5.2% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to shrink 3.5% to €0.49 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €883.8m and earnings per share (EPS) of €0.54 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the €6.29 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Altri SGPS, with the most bullish analyst valuing it at €6.70 and the most bearish at €5.60 per share. This is a very narrow spread of estimates, implying either that Altri SGPS is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We would highlight that Altri SGPS' revenue growth is expected to slow, with the forecast 4.1% annualised growth rate until the end of 2025 being well below the historical 6.1% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.3% annually. So it's pretty clear that, while Altri SGPS' revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Altri SGPS. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as 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 forecasts for Altri SGPS going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Altri SGPS that you need to take into consideration.

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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.