Yahoo Finance Groupe Gorgé SA (EPA:GOE) Analysts Are Cutting Their Estimates: Here's What You Need To Know
Shareholders of Groupe Gorgé SA (EPA:GOE) will be pleased this week, given that the stock price is up 18% to €11.64 following its latest full-year results. It was an okay result overall, with revenues coming in at €275m, roughly what the analysts had been expecting. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
View our latest analysis for Groupe Gorgé
Taking into account the latest results, the current consensus, from the dual analysts covering Groupe Gorgé, is for revenues of €267.0m in 2020, which would reflect a noticeable 2.8% reduction in Groupe Gorgé's sales over the past 12 months. Groupe Gorgé is also expected to turn profitable, with statutory earnings of €0.25 per share. Before this earnings report, the analysts had been forecasting revenues of €318.9m and earnings per share (EPS) of €0.75 in 2020. Indeed, we can see that the analysts are a lot more bearish about Groupe Gorgé's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.
The consensus price target fell 5.9% to €18.00, with the weaker earnings outlook clearly leading valuation estimates.
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. These estimates imply that sales are expected to slow, with a forecast revenue decline of 2.8%, a significant reduction from annual growth of 3.8% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.6% annually for the foreseeable future. It's pretty clear that Groupe Gorgé's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Groupe Gorgé. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Groupe Gorgé's future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Groupe Gorgé. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Groupe Gorgé going out as far as 2021, and you can see them free on our platform here.
You still need to take note of risks, for example - Groupe Gorgé has 2 warning signs we think you should be aware of.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
