Earnings Update: Bucher Industries AG (VTX:BUCN) Just Reported Its Half-Year Results And Analysts Are Updating Their Forecasts
Shareholders might have noticed that Bucher Industries AG (VTX:BUCN) filed its half-yearly result this time last week. The early response was not positive, with shares down 2.1% to CHF385 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 3.9%to hit CHF1.9b. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Bucher Industries after the latest results.
See our latest analysis for Bucher Industries
After the latest results, the consensus from Bucher Industries' seven analysts is for revenues of CHF3.68b in 2023, which would reflect a measurable 2.1% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to decline 13% to CHF31.85 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF3.68b and earnings per share (EPS) of CHF31.51 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.
The analysts reconfirmed their price target of CHF451, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Bucher Industries analyst has a price target of CHF503 per share, while the most pessimistic values it at CHF400. This is a very narrow spread of estimates, implying either that Bucher Industries is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 4.2% annualised decline to the end of 2023. That is a notable change from historical growth of 4.1% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Bucher Industries is expected to lag 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 CHF451, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Bucher Industries. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Bucher Industries going out to 2025, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Bucher Industries , and understanding this should be part of your investment process.
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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