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It's been a good week for Warimpex Finanz- und Beteiligungs AG (VIE:WXF) shareholders, because the company has just released its latest annual results, and the shares gained 8.4% to €1.29. Revenues came in at €61m, an impressive 86% ahead of analyst forecasts. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Warimpex Finanz- und Beteiligungs
After the latest results, the consensus from Warimpex Finanz- und Beteiligungs' three analysts is for revenues of €37.0m in 2020, which would reflect a disturbing 39% decline in sales compared to the last year of performance. Statutory earnings per share are expected to nosedive 75% to €0.29 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €37.0m and earnings per share (EPS) of €0.28 in 2020. So the consensus seems to have become somewhat more optimistic on Warimpex Finanz- und Beteiligungs' earnings potential following these results.
The consensus price target was unchanged at €2.01, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Warimpex Finanz- und Beteiligungs at €2.50 per share, while the most bearish prices it at €1.70. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. One more thing stood out to us about these estimates, and it's the idea that Warimpex Finanz- und Beteiligungs'decline is expected to accelerate, with revenues forecast to fall 39% next year, topping off a historical decline of 11% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.7% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Warimpex Finanz- und Beteiligungs to suffer worse than the wider industry.