Yahoo Finance SMA Solar Technology AG (ETR:S92) Full-Year Results: Here's What Analysts Are Forecasting For This Year
SMA Solar Technology AG (ETR:S92) defied analyst predictions to release its annual results, which were ahead of market expectations. Results were good overall, with revenues beating analyst predictions by 2.3% to hit €1.9b. Statutory earnings per share (EPS) came in at €6.50, some 3.5% above whatthe analysts had expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Check out our latest analysis for SMA Solar Technology
After the latest results, the six analysts covering SMA Solar Technology are now predicting revenues of €1.99b in 2024. If met, this would reflect a reasonable 4.7% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to tumble 30% to €4.54 in the same period. Before this earnings report, the analysts had been forecasting revenues of €1.99b and earnings per share (EPS) of €4.15 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
The consensus price target was unchanged at €66.33, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic SMA Solar Technology analyst has a price target of €76.00 per share, while the most pessimistic values it at €60.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. We would highlight that SMA Solar Technology's revenue growth is expected to slow, with the forecast 4.7% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.3% per year. Factoring in the forecast slowdown in growth, it seems obvious that SMA Solar Technology is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards SMA Solar Technology following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple SMA Solar Technology analysts - going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for SMA Solar Technology (2 can't be ignored!) that you need to take into consideration.
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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.
