Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Schweiter Technologies AG (VTX:SWTQ) After Its Full-Year Report
Shareholders might have noticed that Schweiter Technologies AG (VTX:SWTQ) filed its yearly result this time last week. The early response was not positive, with shares down 8.0% to CHF723 in the past week. It was an okay result overall, with revenues coming in at CHF1.2b, roughly what the analysts had been expecting. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Schweiter Technologies
Taking into account the latest results, Schweiter Technologies' six analysts currently expect revenues in 2023 to be CHF1.20b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 46% to CHF29.60. In the lead-up to this report, the analysts had been modelling revenues of CHF1.19b and earnings per share (EPS) of CHF35.71 in 2023. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at CHF828, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Schweiter Technologies, with the most bullish analyst valuing it at CHF947 and the most bearish at CHF650 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Schweiter Technologies shareholders.
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 Schweiter Technologies' revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2023 being well below the historical 4.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Schweiter Technologies.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Schweiter Technologies' 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.
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 Schweiter Technologies going out to 2025, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Schweiter Technologies , and understanding these should be part of your investment process.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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