Yahoo Finance SAF-Holland SE (ETR:SFQ) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
SAF-Holland SE (ETR:SFQ) shareholders are probably feeling a little disappointed, since its shares fell 6.3% to €17.00 in the week after its latest first-quarter results. It was a credible result overall, with revenues of €505m and statutory earnings per share of €0.58 both in line with analyst estimates, showing that SAF-Holland is executing 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
View our latest analysis for SAF-Holland
Taking into account the latest results, the five analysts covering SAF-Holland provided consensus estimates of €2.02b revenue in 2024, which would reflect a small 5.3% decline over the past 12 months. Statutory earnings per share are predicted to accumulate 9.3% to €2.09. Before this earnings report, the analysts had been forecasting revenues of €2.02b and earnings per share (EPS) of €2.01 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at €23.70, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values SAF-Holland at €31.00 per share, while the most bearish prices it at €19.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 7.0% by the end of 2024. This indicates a significant reduction from annual growth of 12% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - SAF-Holland is expected to lag the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards SAF-Holland following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that SAF-Holland's revenue is 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 estimates - from multiple SAF-Holland analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for SAF-Holland that you need to take into consideration.
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.
