Here’s what analysts are predicting next

The shareholders should have noticed that Pfeiffer Vacuum Technology AG (ETR:PFV) released its quarterly earnings results this time last week. The early reaction was not positive, shares fell 6.8% over the past week to €138. Pfeiffer Vacuum Technology exceeded sales forecasts by a solid 18% to €228 million. Statutory earnings per share were in line with expectations at €6.28. 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 the next year and see if expectations for the company have changed. Readers will be pleased to know that we’ve summarized the latest legal guidance to see if analysts have changed their minds on Pfeiffer Vacuum Technology following the latest results.

Check out our latest analysis for Pfeiffer Vacuum Technology

Profit and Revenue Growth

Profit and Revenue Growth

According to last week’s earnings report, the three analysts from Pfeiffer Vacuum Technology are forecasting sales of €856.1 million for 2023, which is roughly in line with the last 12 months. Statutory earnings per share are expected to increase by 8.7% to €8.42. Prior to this earnings report, analysts were forecasting 2023 revenues of €841.3 million and earnings per share (EPS) of €8.23. Analysts appear to have become more upbeat on the deal judging by their new estimates of earnings per share.

The consensus price target of $150 hasn’t changed significantly, suggesting that the improving earnings per share outlook isn’t enough to be a positive long-term impact on the stock’s valuation. It might also be instructive to look at the range of analyst estimates to assess how different the opinions of the outliers are from the mean. Currently, the most optimistic analyst values ​​Pfeiffer Vacuum Technology at €141 per share, the most bearish at €127. The narrow spread of estimates could indicate that the company’s future is relatively easy to assess or that analysts are strong on its prospects.

One way to get more context on these forecasts is to look at how they compare to both past performance and the performance of other companies in the same industry. Those estimates imply that sales are expected to slow, with a projected annualized sales decline of 0.8% through the end of 2023. This points to a significant slowdown from 6.3% annual growth over the past five years. In contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecasting 4.0% annualized revenue growth for the foreseeable future. While revenue is expected to shrink, there is no silver lining to that cloud — Pfeiffer Vacuum Technology is expected to lag the broader industry.

The final result

The biggest takeaway for us is the consensus earnings per share increase, which points to a significant improvement in sentiment towards Pfeiffer Vacuum Technology’s earnings potential over the next year. Fortunately, analysts also confirmed their sales estimates, suggesting sales are in line with expectations — although our data suggests Pfeiffer Vacuum Technology’s sales are expected to underperform the broader industry. There was no real change in the consensus price target, suggesting that the company’s intrinsic value has not changed significantly from the most recent estimates.

Against this background, we still think that the longer-term development of the company is much more important to investors. We have forecasts for Pfeiffer Vacuum Technology up to 2024 which you can view here for free on our platform.

Before you get too excited though, we spotted it 2 warning signs for Pfeiffer Vacuum Technology (1 must not be ignored!) that you should know.

Do you have any feedback about this article? Concerned about the content? Get in touch directly with us. Alternatively, send an email to the editorial team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We provide comments based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your goals or financial situation. Our goal is to offer you long-term focused analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any of the stocks mentioned.

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