Envista Holdings Corporation Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Shareholders might have noticed that Envista Holdings Corporation (NYSE:NVST) filed its annual result this time last week. The early response was not positive, with shares down 5.6% to US$22.44 in the past week. Revenues came in at US$2.6b, in line with estimates, while Envista Holdings reported a statutory loss of US$0.60 per share, well short of prior analyst forecasts for a profit. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for Envista Holdings
Taking into account the latest results, Envista Holdings' twelve analysts currently expect revenues in 2024 to be US$2.60b, approximately in line with the last 12 months. Earnings are expected to improve, with Envista Holdings forecast to report a statutory profit of US$1.06 per share. Before this earnings report, the analysts had been forecasting revenues of US$2.60b and earnings per share (EPS) of US$1.24 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target fell 8.5% to US$26.00, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 Envista Holdings, with the most bullish analyst valuing it at US$33.00 and the most bearish at US$20.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2024. That would be a definite improvement, given that the past five years have seen revenue shrink 0.5% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.0% per year. Although Envista Holdings' revenues are expected to improve, it seems that it is still expected 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 Envista Holdings. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Envista Holdings' revenue is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Envista Holdings' future valuation.
With that in mind, we wouldn't be too quick to come to a conclusion on Envista Holdings. Long-term earnings power is much more important than next year's profits. We have forecasts for Envista Holdings going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Envista Holdings that we have uncovered.
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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.
