April 25, 2024
Finance

Analysts Have Made A Financial Statement On WashTec AG’s (ETR:WSU) Yearly Report


WashTec AG (ETR:WSU) came out with its yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Results were roughly in line with estimates, with revenues of €489m and statutory earnings per share of €2.09. 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 WashTec

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Following last week’s earnings report, WashTec’s four analysts are forecasting 2024 revenues to be €493.5m, approximately in line with the last 12 months. Per-share earnings are expected to swell 15% to €2.40. Before this earnings report, the analysts had been forecasting revenues of €499.0m and earnings per share (EPS) of €2.37 in 2024. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of €49.13, suggesting that the company has met expectations in its recent result. There’s another way to think about price targets though, and that’s to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on WashTec, with the most bullish analyst valuing it at €53.00 and the most bearish at €43.00 per share. This is a very narrow spread of estimates, implying either that WashTec is an easy company to value, or – more likely – the analysts are relying heavily on some key assumptions.

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. We would highlight that WashTec’s revenue growth is expected to slow, with the forecast 0.8% annualised growth rate until the end of 2024 being well below the historical 3.4% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.6% annually. Factoring in the forecast slowdown in growth, it seems obvious that WashTec is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there’s been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that WashTec’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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year’s earnings. We have forecasts for WashTec going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example – WashTec 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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