VIA optronics AG Just Missed Earnings; Here's What Analysts Are Forecasting Now

Investors in VIA optronics AG (NYSE:VIAO) had a good week, as its shares rose 9.5% to close at US$13.80 following the release of its yearly results. The results don't look great, especially considering that the analysts had been forecasting a profit and VIA optronics delivered a statutory loss of €0.21 per share. Revenues of €153m did beat expectations by 3.8% though. 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. 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 VIA optronics

Taking into account the latest results, the consensus forecast from VIA optronics' two analysts is for revenues of €183.0m in 2021, which would reflect a notable 20% improvement in sales compared to the last 12 months. Earnings are expected to improve, with VIA optronics forecast to report a statutory profit of €1.28 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €174.5m and earnings per share (EPS) of €1.10 in 2021. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a decent improvement in earnings per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of €16.72, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the VIA optronics' past performance and to peers in the same industry. One thing stands out from these estimates, which is that VIA optronics is forecast to grow faster in the future than it has in the past, with revenues expected to display 20% annualised growth until the end of 2021. If achieved, this would be a much better result than the 1.1% annual decline over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.3% per year. Not only are VIA optronics' revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around VIA optronics' earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for VIA optronics going out as far as 2025, and you can see them free on our platform here.

We also provide an overview of the VIA optronics Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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