The L'Air Liquide S.A. (EPA:AI) Interim Results Are Out And Analysts Have Published New Forecasts

L'Air Liquide S.A. (EPA:AI) shareholders are probably feeling a little disappointed, since its shares fell 2.2% to €172 in the week after its latest half-year results. It was an okay report, and revenues came in at €14b, approximately in line with analyst estimates leading up to the results announcement. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the 18 analysts covering L'Air Liquide are now predicting revenues of €28.2b in 2026. If met, this would reflect a modest 4.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to expand 14% to €6.33. In the lead-up to this report, the analysts had been modelling revenues of €28.2b and earnings per share (EPS) of €6.22 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Check out our latest analysis for L'Air Liquide

There were no changes to revenue or earnings estimates or the price target of €196, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic L'Air Liquide analyst has a price target of €216 per share, while the most pessimistic values it at €160. This is a very narrow spread of estimates, implying either that L'Air Liquide is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting L'Air Liquide's growth to accelerate, with the forecast 8.8% annualised growth to the end of 2026 ranking favourably alongside historical growth of 2.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.0% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that L'Air Liquide is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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.

With that in mind, we wouldn't be too quick to come to a conclusion on L'Air Liquide. Long-term earnings power is much more important than next year's profits. We have forecasts for L'Air Liquide going out to 2028, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with L'Air Liquide , and understanding it should be part of your investment process.

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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.