Yahoo Finance Lucas Bols N.V. (AMS:BOLS) Just Reported, And Analysts Assigned A €10.00 Price Target
Investors in Lucas Bols N.V. (AMS:BOLS) had a good week, as its shares rose 5.1% to close at €8.58 following the release of its annual results. Revenues came in 3.6% below expectations, at €84m. Statutory earnings per share were relatively better off, with a per-share profit of €0.74 being roughly in line with analyst estimates. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Lucas Bols
Taking into account the latest results, the dual analysts covering Lucas Bols provided consensus estimates of €81.4m revenue in 2021, which would reflect a discernible 3.1% decline on its sales over the past 12 months. Statutory earnings per share are expected to tumble 47% to €0.39 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €74.0m and earnings per share (EPS) of €0.76 in 2021. So it's pretty clear the analysts have mixed opinions on Lucas Bols after the latest results; even though they upped their revenue numbers, it came at the cost of a large cut to per-share earnings expectations.
The consensus price target fell 22% to €10.00, suggesting that the analysts are primarily focused on earnings as the driver of value for this business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with the forecast 3.1% revenue decline a notable change from historical growth of 3.9% 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 4.4% annually for the foreseeable future. It's pretty clear that Lucas Bols' 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 Lucas Bols. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Lucas Bols' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Lucas Bols. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2023, which can be seen for free on our platform here.
Before you take the next step you should know about the 3 warning signs for Lucas Bols that we have uncovered.
Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email 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. 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. Thank you for reading.
