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ORIOR AG Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Simply Wall St

The full-year results for ORIOR AG (VTX:ORON) were released last week, making it a good time to revisit its performance. The result was positive overall - although revenues of CHF596m were in line with what analysts predicted, ORIOR surprised by delivering a statutory profit of CHF4.84 per share, modestly greater than expected. 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.

See our latest analysis for ORIOR

SWX:ORON Past and Future Earnings, February 29th 2020

Taking into account the latest results, the latest consensus from ORIOR's six analysts is for revenues of CHF643.3m in 2020, which would reflect a modest 7.9% improvement in sales compared to the last 12 months. Statutory per share are forecast to be CHF4.79, approximately in line with the last 12 months. In the lead-up to this report, analysts had been modelling revenues of CHF644.5m and earnings per share (EPS) of CHF4.71 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CHF88.00, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic ORIOR analyst has a price target of CHF100.00 per share, while the most pessimistic values it at CHF70.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

It can also be useful to step back and take a broader view of how analyst forecasts compare to ORIOR's performance in recent years. Analysts are definitely expecting ORIOR's growth to accelerate, with the forecast 7.9% growth ranking favourably alongside historical growth of 3.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, analysts also expect ORIOR to grow faster than the wider market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. 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.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for ORIOR going out to 2023, and you can see them free on our platform here.

You can also view our analysis of ORIOR's balance sheet, and whether we think ORIOR is carrying too much debt, for free on our platform here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.