Yahoo Finance Constellium SE Just Missed EPS By 46%: Here's What Analysts Think Will Happen Next
Last week saw the newest first-quarter earnings release from Constellium SE (NYSE:CSTM), an important milestone in the company's journey to build a stronger business. Revenue of €1.7b surpassed estimates by 7.8%, although statutory earnings per share missed badly, coming in 46% below expectations at €0.11 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Constellium
After the latest results, the six analysts covering Constellium are now predicting revenues of €7.32b in 2024. If met, this would reflect a satisfactory 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 109% to €1.72. Before this earnings report, the analysts had been forecasting revenues of €7.15b and earnings per share (EPS) of €1.71 in 2024. There doesn't appear to have been a major change in sentiment following the results, other than the slight bump in revenue estimates.
It may not be a surprise to see thatthe analysts have reconfirmed their price target of US$25.16, implying that the uplift in revenue is not expected to greatly contribute to Constellium's valuation in the near term. 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 Constellium at US$27.04 per share, while the most bearish prices it at US$23.70. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Constellium's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Constellium's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 5.8% growth on an annualised basis. This is compared to a historical growth rate of 8.2% over the past five years. Compare this to the 258 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.8% per year. So it's pretty clear that, while Constellium's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also upgraded their revenue forecasts, although the latest estimates suggest that Constellium will grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Constellium. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Constellium going out to 2026, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 1 warning sign for Constellium that you need to be mindful of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
