Earnings Update: Altri, SGPS, S.A. (ELI:ALTR) Just Reported And Analysts Are Boosting Their Estimates

Last week, you might have seen that Altri, SGPS, S.A. (ELI:ALTR) released its quarterly result to the market. The early response was not positive, with shares down 4.3% to €5.28 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 9.2%to hit €223m. 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. 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.

View our latest analysis for Altri SGPS

Taking into account the latest results, the consensus forecast from Altri SGPS' five analysts is for revenues of €900.5m in 2024. This reflects a meaningful 20% improvement in revenue compared to the last 12 months. Per-share earnings are expected to leap 187% to €0.63. Yet prior to the latest earnings, the analysts had been anticipated revenues of €839.0m and earnings per share (EPS) of €0.50 in 2024. So it seems there's been a definite increase in optimism about Altri SGPS' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of €6.10, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Altri SGPS, with the most bullish analyst valuing it at €7.05 and the most bearish at €5.10 per share. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Altri SGPS' growth to accelerate, with the forecast 28% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.3% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Altri SGPS to grow faster than the wider industry.

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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Altri SGPS going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Altri SGPS has 4 warning signs (and 2 which are potentially serious) we think you should know about.

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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.