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NV Bekaert SA (EBR:BEKB) last week reported its latest full-year results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share fell badly short of expectations, coming in at €0.73, some 44% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €4.3b. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.
See our latest analysis for NV Bekaert
Taking into account the latest results, the current consensus from NV Bekaert's three analysts is for revenues of €4.45b in 2020, which would reflect a reasonable 3.0% increase on its sales over the past 12 months. Statutory earnings per share are expected to surge 291% to €2.86. In the lead-up to this report, analysts had been modelling revenues of €4.43b and earnings per share (EPS) of €2.62 in 2020. Analysts seem to have become more bullish on the business, judging by their new earnings per share estimates.
There's been no major changes to the consensus price target of €26.90, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. The consensus price target just an average of individual analyst targets, so - considering that the price target changed, it would be handy to see how wide the range of underlying estimates is. The most optimistic NV Bekaert analyst has a price target of €28.60 per share, while the most pessimistic values it at €25.00. Still, with such a tight range of estimates, it suggests analysts have a pretty good idea of what they think the company is worth.
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 NV Bekaert's revenue growth is expected to slow, with forecast 3.0% increase next year well below the historical 5.8%p.a. growth over the last five years. Juxtapose this against the other companies in the market with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.5% next year. So it's pretty clear that, while NV Bekaert's revenue growth is expected to slow, it's still expected to grow faster than the market itself.