Results: Siltronic AG Beat Earnings Expectations And Analysts Now Have New Forecasts
Investors in Siltronic AG (ETR:WAF) had a good week, as its shares rose 5.3% to close at €78.20 following the release of its second-quarter results. The result was positive overall - although revenues of €404m were in line with what the analysts predicted, Siltronic surprised by delivering a statutory profit of €1.83 per share, modestly greater than expected. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for Siltronic
After the latest results, the consensus from Siltronic's ten analysts is for revenues of €1.55b in 2023, which would reflect a not inconsiderable 12% decline in revenue compared to the last year of performance. Statutory earnings per share are forecast to plunge 49% to €5.53 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €1.60b and earnings per share (EPS) of €6.89 in 2023. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
The analysts made no major changes to their price target of €70.20, suggesting the downgrades are not expected to have a long-term impact on Siltronic's valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Siltronic analyst has a price target of €100.00 per share, while the most pessimistic values it at €52.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying 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. We would highlight that revenue is expected to reverse, with a forecast 22% annualised decline to the end of 2023. That is a notable change from historical growth of 5.2% 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 7.9% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Siltronic is expected to lag 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 Siltronic. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at €70.20, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Siltronic analysts - going out to 2025, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 3 warning signs for Siltronic you should be aware of, and 2 of them make us uncomfortable.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
