Last week, you might have seen that APG|SGA SA (VTX:APGN) released its annual result to the market. The early response was not positive, with shares down 9.2% to CHF258 in the past week. It was an okay result overall, with revenues coming in at CHF320m, roughly what analysts had been expecting. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from APG|SGA's dual analysts is for revenues of CHF338.8m in 2020, which would reflect a reasonable 5.8% increase on its sales over the past 12 months. Before this earnings result, analysts had predicted CHF338.5m revenue in 2020, although there was no accompanying EPS estimate. It looks like the latest results have met analyst expectations and confirmed that the business is performing in line with expectations, given there's been no real changes in the new revenue estimates.
The average analyst price target fell 20% to CHF225, with analysts clearly having become less optimistic about APG|SGA's prospects following its latest earnings.
It can be useful to take a broader overview by seeing how analyst forecasts compare, both to the APG|SGA's past performance and to peers in the same market. One thing stands out from these estimates, which is that analysts are forecasting APG|SGA to grow faster in the future than it has in the past, with revenues expected to grow 5.8%. If achieved, this would be a much better result than the 0.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the market are forecast to see their revenue grow 2.8% per year. Although APG|SGA's revenues are expected to improve, it seems that analysts are also expecting it to grow faster than the wider market.
The Bottom Line
Probably the biggest thing to take away from these latest forecasts is that brokers are definitely optimistic on the business, given the forecast for profitability next year. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by the latest results, leading to a lower estimate of APG|SGA's future valuation.
We have estimates for APG|SGA from its dual analysts , and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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