Yahoo Finance Pfeiffer Vacuum Technology AG Beat Revenue Forecasts By 18%: Here's What Analysts Are Forecasting Next
Shareholders might have noticed that Pfeiffer Vacuum Technology AG (ETR:PFV) filed its quarterly result this time last week. The early response was not positive, with shares down 6.8% to €138 in the past week. Pfeiffer Vacuum Technology beat revenue forecasts by a solid 18% to hit €228m. Statutory earnings per share came in at €6.28, in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pfeiffer Vacuum Technology after the latest results.
View our latest analysis for Pfeiffer Vacuum Technology
Following last week's earnings report, Pfeiffer Vacuum Technology's three analysts are forecasting 2023 revenues to be €856.1m, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 8.7% to €8.42. Before this earnings report, the analysts had been forecasting revenues of €841.3m and earnings per share (EPS) of €8.23 in 2023. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of €134, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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 Pfeiffer Vacuum Technology at €141 per share, while the most bearish prices it at €127. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.8% by the end of 2023. This indicates a significant reduction from annual growth of 6.3% 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 4.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Pfeiffer Vacuum Technology is expected to lag 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 Pfeiffer Vacuum Technology's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Pfeiffer Vacuum Technology's 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Pfeiffer Vacuum Technology going out to 2024, and you can see them free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Pfeiffer Vacuum Technology (1 can't be ignored!) 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.
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