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Revenue Miss: SYZYGY AG Fell 6.2% Short Of Analyst Revenue Estimates And Analysts Have Been Revising Their Models

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SYZYGY AG (ETR:SYZ) just released its latest quarterly report and things are not looking great. Results look to have been somewhat negative - revenue fell 6.2% short of analyst estimates at €18m, and statutory earnings of €0.06 per share missed forecasts by 4.6%. The 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on SYZYGY after the latest results.

View our latest analysis for SYZYGY

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XTRA:SYZ Earnings and Revenue Growth November 2nd 2024

Taking into account the latest results, the most recent consensus for SYZYGY from dual analysts is for revenues of €76.6m in 2025. If met, it would imply a notable 9.6% increase on its revenue over the past 12 months. Per-share earnings are expected to leap 108% to €0.36. In the lead-up to this report, the analysts had been modelling revenues of €77.7m and earnings per share (EPS) of €0.37 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at €7.57, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that SYZYGY's rate of growth is expected to accelerate meaningfully, with the forecast 7.6% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 4.3% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SYZYGY to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SYZYGY. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €7.57, with the latest estimates not enough to have an impact on their price targets.