Earnings Update: Tecan Group AG (VTX:TECN) Just Reported Its Half-Year Results And Analysts Are Updating Their Forecasts
As you might know, Tecan Group AG (VTX:TECN) recently reported its half-yearly numbers. Results overall were respectable, with statutory earnings of CHF9.47 per share roughly in line with what the analysts had forecast. Revenues of CHF541m came in 3.0% ahead of analyst predictions. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for Tecan Group
Taking into account the latest results, the current consensus from Tecan Group's six analysts is for revenues of CHF1.16b in 2023. This would reflect a credible 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 23% to CHF10.48. In the lead-up to this report, the analysts had been modelling revenues of CHF1.16b and earnings per share (EPS) of CHF10.59 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 CHF455, showing that the business is executing well and in line with expectations. 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. Currently, the most bullish analyst values Tecan Group at CHF485 per share, while the most bearish prices it at CHF434. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tecan Group's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Tecan Group's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 16% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 10% annually. Factoring in the forecast slowdown in growth, it looks like Tecan Group is forecast to grow at about the same rate as 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 in mind, we wouldn't be too quick to come to a conclusion on Tecan Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Tecan Group analysts - going out to 2025, and you can see them free on our platform here.
Even so, be aware that Tecan Group is showing 1 warning sign in our investment analysis , you should know about...
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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.
