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Investors in Wacker Chemie AG (ETR:WCH) had a good week, as its shares rose 7.2% to close at €82.54 following the release of its yearly results. Revenues were €5.7b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €4.85 were also better than expected, beating analyst predictions by 18%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Wacker Chemie
Taking into account the latest results, the current consensus from Wacker Chemie's 14 analysts is for revenues of €6.06b in 2025. This would reflect a reasonable 5.9% increase on its revenue over the past 12 months. Statutory earnings per share are expected to decline 12% to €4.25 in the same period. Before this earnings report, the analysts had been forecasting revenues of €6.18b and earnings per share (EPS) of €5.47 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
It might be a surprise to learn that the consensus price target was broadly unchanged at €96.87, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Wacker Chemie, with the most bullish analyst valuing it at €133 and the most bearish at €74.00 per share. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wacker Chemie's past performance and to peers in the same industry. The period to the end of 2025 brings more of the same, according to the analysts, with revenue forecast to display 5.9% growth on an annualised basis. That is in line with its 6.5% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.9% annually. So although Wacker Chemie is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.