Leifheit Aktiengesellschaft (ETR:LEI) Just Released Its Annual Earnings: Here's What Analysts Think
Shareholders of Leifheit Aktiengesellschaft (ETR:LEI) will be pleased this week, given that the stock price is up 12% to €18.22 following its latest yearly results. Revenues of €234m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.61, missing estimates by 4.7%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Leifheit after the latest results.
View our latest analysis for Leifheit
Following last week's earnings report, Leifheit's three analysts are forecasting 2020 revenues to be €234.0m, approximately in line with the last 12 months. Per-share earnings are expected to jump 48% to €0.90. Yet prior to the latest earnings, the analysts had been anticipated revenues of €240.1m and earnings per share (EPS) of €0.86 in 2020. So it's pretty clear that while sentiment around revenues has declined following the latest results, the analysts are now more bullish on the company's earnings power.
The consensus has made no major changes to the price target of €22.38, suggesting the forecast improvement in earnings is expected to offset the decline in revenues next year. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Leifheit analyst has a price target of €25.00 per share, while the most pessimistic values it at €19.50. 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.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with the forecast 0.008% revenue decline a notable change from historical growth of 0.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.2% next year. It's pretty clear that Leifheit's revenues are expected to perform substantially worse than the wider industry.
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 Leifheit following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates revenues are expected to perform worse than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Still, earnings per share are more important to value creation for shareholders. 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Leifheit going out to 2022, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for Leifheit (1 shouldn't be ignored!) that you need to take into consideration.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
