Analyst Estimates: Here's What Brokers Think Of Gerresheimer AG (ETR:GXI) After Its Annual Report
It's been a pretty great week for Gerresheimer AG (ETR:GXI) shareholders, with its shares surging 15% to €104 in the week since its latest full-year results. Results were roughly in line with estimates, with revenues of €2.0b and statutory earnings per share of €3.48. 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.
See our latest analysis for Gerresheimer
Taking into account the latest results, the current consensus from Gerresheimer's nine analysts is for revenues of €2.13b in 2024. This would reflect a reasonable 7.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 26% to €4.23. In the lead-up to this report, the analysts had been modelling revenues of €2.14b and earnings per share (EPS) of €4.38 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.
The consensus price target held steady at €131, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 Gerresheimer at €200 per share, while the most bearish prices it at €115. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Gerresheimer'shistorical trends, as the 7.0% annualised revenue growth to the end of 2024 is roughly in line with the 8.4% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So although Gerresheimer is expected to maintain its revenue growth rate, it's forecast to grow slower 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 Gerresheimer. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Gerresheimer'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.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Gerresheimer 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 Gerresheimer that you need to take into consideration.
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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.
