Yahoo Finance Earnings Miss: Symrise AG Missed EPS By 5.2% And Analysts Are Revising Their Forecasts
It's been a pretty great week for Symrise AG (ETR:SY1) shareholders, with its shares surging 12% to €108 in the week since its latest annual results. It looks like the results were a bit of a negative overall. While revenues of €4.7b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.2% to hit €2.44 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Symrise
After the latest results, the 18 analysts covering Symrise are now predicting revenues of €4.93b in 2024. If met, this would reflect a credible 4.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to bounce 32% to €3.22. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.94b and earnings per share (EPS) of €3.23 in 2024. 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 €109, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Symrise at €126 per share, while the most bearish prices it at €90.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. It's pretty clear that there is an expectation that Symrise's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.2% growth on an annualised basis. This is compared to a historical growth rate of 9.1% over the past five years. Compare this to the 18 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 3.6% per year. So it's pretty clear that, while Symrise's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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. At Simply Wall St, we have a full range of analyst estimates for Symrise going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Symrise that 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.
