Last week saw the newest interim earnings release from LEM Holding SA (VTX:LEHN), an important milestone in the company's journey to build a stronger business. LEM Holding beat revenue forecasts by a solid 14% to hit CHF198m. Statutory earnings per share came in at CHF63.48, in line with expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for LEM Holding
Taking into account the latest results, LEM Holding's three analysts currently expect revenues in 2023 to be CHF401.8m, approximately in line with the last 12 months. Statutory per share are forecast to be CHF63.87, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF398.5m and earnings per share (EPS) of CHF63.51 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CHF1,990. 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. There are some variant perceptions on LEM Holding, with the most bullish analyst valuing it at CHF2,050 and the most bearish at CHF1,950 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
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. It's pretty clear that there is an expectation that LEM Holding's revenue growth will slow down substantially, with revenues to the end of 2023 expected to display 1.2% growth on an annualised basis. This is compared to a historical growth rate of 4.7% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.8% per year. Factoring in the forecast slowdown in growth, it seems obvious that LEM Holding is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for LEM Holding going out to 2025, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with LEM Holding .
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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.
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personalized bobblehead(2023-02-09 16:01:35Z)
Just thought I should leave a short comment saying thank you for your hard work and effort putting all this information together. Some of us appreciate it.REPLY