Yahoo Finance Stratec SE (ETR:SBS) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates
Stratec SE (ETR:SBS) shareholders are probably feeling a little disappointed, since its shares fell 4.4% to €81.30 in the week after its latest quarterly results. Stratec reported in line with analyst predictions, delivering revenues of €70m and statutory earnings per share of €3.28, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Stratec
Taking into account the latest results, the consensus forecast from Stratec's six analysts is for revenues of €310.5m in 2023, which would reflect a decent 15% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 48% to €3.46. In the lead-up to this report, the analysts had been modelling revenues of €311.9m and earnings per share (EPS) of €3.49 in 2023. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of €104, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Stratec at €125 per share, while the most bearish prices it at €82.00. 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 Stratec 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. The analysts are definitely expecting Stratec's growth to accelerate, with the forecast 12% annualised growth to the end of 2023 ranking favourably alongside historical growth of 9.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.6% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Stratec is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Stratec. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Stratec analysts - going out to 2024, and you can see them free on our platform here.
You still need to take note of risks, for example - Stratec has 1 warning sign we think you should be aware of.
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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