In This Article:
It's been a mediocre week for SMA Solar Technology AG (ETR:S92) shareholders, with the stock dropping 16% to €17.70 in the week since its latest yearly results. The results don't look great, especially considering that statutory losses grew 39% to€3.39 per share. Revenues of €1.5b did beat expectations by 3.4%, but it looks like a bit of a cold comfort. 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.
Taking into account the latest results, SMA Solar Technology's five analysts currently expect revenues in 2025 to be €1.53b, approximately in line with the last 12 months. Earnings are expected to improve, with SMA Solar Technology forecast to report a statutory profit of €1.36 per share. In the lead-up to this report, the analysts had been modelling revenues of €1.53b and earnings per share (EPS) of €1.36 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out our latest analysis for SMA Solar Technology
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 9.8% to €18.00. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values SMA Solar Technology at €22.00 per share, while the most bearish prices it at €15.00. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SMA Solar Technology's past performance and to peers in the same industry. We would highlight that SMA Solar Technology's revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% per year. Factoring in the forecast slowdown in growth, it seems obvious that SMA Solar Technology is also expected to grow slower than other industry participants.