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It's shaping up to be a tough period for AIXTRON SE (ETR:AIXA), which a week ago released some disappointing third-quarter results that could have a notable impact on how the market views the stock. AIXTRON missed analyst forecasts, with revenues of €156m and statutory earnings per share (EPS) of €0.27, falling short by 4.0% and 9.4% respectively. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for AIXTRON
Taking into account the latest results, the 13 analysts covering AIXTRON provided consensus estimates of €603.3m revenue in 2025, which would reflect a noticeable 2.8% decline over the past 12 months. Statutory per-share earnings are expected to be €1.02, roughly flat on the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €638.1m and earnings per share (EPS) of €1.08 in 2025. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
It'll come as no surprise then, to learn that the analysts have cut their price target 11% to €19.76. 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. Currently, the most bullish analyst values AIXTRON at €30.00 per share, while the most bearish prices it at €12.00. 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.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 2.2% annualised decline to the end of 2025. That is a notable change from historical growth of 22% 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 7.7% per year. It's pretty clear that AIXTRON's revenues are expected to perform substantially worse than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.