Sensient Technologies Corporation (NYSE:SXT) Just Released Its Yearly Results And Analysts Are Updating Their Estimates

Sensient Technologies Corporation (NYSE:SXT) shareholders are probably feeling a little disappointed, since its shares fell 7.4% to US$71.23 in the week after its latest annual results. The result was positive overall - although revenues of US$1.6b were in line with what the analysts predicted, Sensient Technologies surprised by delivering a statutory profit of US$2.94 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Sensient Technologies

After the latest results, the twin analysts covering Sensient Technologies are now predicting revenues of US$1.60b in 2025. If met, this would reflect an okay 2.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 6.0% to US$3.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.61b and earnings per share (EPS) of US$3.38 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at US$85.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 2.8% growth on an annualised basis. That is in line with its 3.3% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.4% per year. So it's pretty clear that Sensient Technologies is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Sensient Technologies. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Sensient Technologies' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$85.50, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Sensient Technologies. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Sensient Technologies going out as far as 2027, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 1 warning sign for Sensient Technologies you should be aware 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.