Investors in Helvetia Holding AG (VTX:HELN) had a good week, as its shares rose 3.9% to close at CHF126 following the release of its annual results. Results look mixed - while revenue fell marginally short of analyst estimates at CHF11b, statutory earnings beat expectations 7.8%, with Helvetia Holding reporting profits of CHF10.60 per share. 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.
Check out our latest analysis for Helvetia Holding
Taking into account the latest results, the consensus forecast from Helvetia Holding's three analysts is for revenues of CHF12.1b in 2023, which would reflect a meaningful 14% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to shrink 5.0% to CHF10.33 in the same period. Before this earnings report, the analysts had been forecasting revenues of CHF11.3b and earnings per share (EPS) of CHF10.45 in 2023. So it looks like there's been no major change in sentiment following the latest results, although the analysts have made a small lift in to revenue forecasts.
The consensus price target increased 5.7% to CHF111, with an improved revenue forecast carrying the promise of a more valuable business, in time. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Helvetia Holding analyst has a price target of CHF121 per share, while the most pessimistic values it at CHF93.00. This is a very narrow spread of estimates, implying either that Helvetia Holding is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Helvetia Holding's growth to accelerate, with the forecast 14% annualised growth to the end of 2023 ranking favourably alongside historical growth of 4.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Helvetia Holding to grow faster than the wider industry.