Corticeira Amorim, S.G.P.S., S.A. Just Beat Revenue By 5.4%: Here's What Analysts Think Will Happen Next

It's been a good week for Corticeira Amorim, S.G.P.S., S.A. (ELI:COR) shareholders, because the company has just released its latest half-year results, and the shares gained 9.1% to €11.46. It was a workmanlike result, with revenues of €433m coming in 5.4% ahead of expectations, and statutory earnings per share of €0.48, in line with analyst appraisals. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Corticeira Amorim S.G.P.S

Taking into account the latest results, Corticeira Amorim S.G.P.S' seven analysts currently expect revenues in 2021 to be €783.3m, approximately in line with the last 12 months. Per-share earnings are expected to increase 5.0% to €0.55. Yet prior to the latest earnings, the analysts had been anticipated revenues of €778.0m and earnings per share (EPS) of €0.55 in 2021. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The analysts reconfirmed their price target of €12.73, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Corticeira Amorim S.G.P.S at €14.30 per share, while the most bearish prices it at €11.70. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

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. We would highlight that Corticeira Amorim S.G.P.S' revenue growth is expected to slow, with the forecast 0.4% annualised growth rate until the end of 2021 being well below the historical 4.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.8% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Corticeira Amorim S.G.P.S.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Corticeira Amorim S.G.P.S' revenues are expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Corticeira Amorim S.G.P.S analysts - going out to 2023, and you can see them free on our platform here.

You can also view our analysis of Corticeira Amorim S.G.P.S' balance sheet, and whether we think Corticeira Amorim S.G.P.S is carrying too much debt, for free on our platform here.

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