Bechtle AG (ETR:BC8) Just Released Its Second-Quarter Earnings: Here's What Analysts Think
It's been a pretty great week for Bechtle AG (ETR:BC8) shareholders, with its shares surging 11% to €44.10 in the week since its latest quarterly results. Bechtle reported €1.5b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.53 beat expectations, being 3.4% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the 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 the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Bechtle
After the latest results, the eleven analysts covering Bechtle are now predicting revenues of €6.48b in 2023. If met, this would reflect a reasonable 3.1% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €2.07, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €6.51b and earnings per share (EPS) of €2.07 in 2023. 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 €47.33, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Bechtle, with the most bullish analyst valuing it at €60.00 and the most bearish at €24.50 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 6.3% growth on an annualised basis. That is in line with its 6.6% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 9.2% annually. So although Bechtle is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €47.33, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Bechtle going out to 2025, and you can see them free on our platform here.
You can also view our analysis of Bechtle's balance sheet, and whether we think Bechtle is carrying too much debt, for free on our platform here.
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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.
