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SAF-Holland SE Just Beat EPS By 10%: Here's What Analysts Think Will Happen Next
Investors in SAF-Holland SE (ETR:SFQ) had a good week, as its shares rose 4.5% to close at €21.85 following the release of its third-quarter results. It looks like a credible result overall - although revenues of €457m were in line with what the analysts predicted, SAF-Holland surprised by delivering a statutory profit of €0.43 per share, a notable 10% above expectations. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
After the latest results, the five analysts covering SAF-Holland are now predicting revenues of €1.94b in 2027. If met, this would reflect a meaningful 8.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 16% to €1.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.91b and earnings per share (EPS) of €1.94 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for SAF-Holland
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €22.30. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values SAF-Holland at €26.00 per share, while the most bearish prices it at €20.50. 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. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 6.6% growth on an annualised basis. That is in line with its 5.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 0.9% annually. So although SAF-Holland is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at €22.30, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on SAF-Holland. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple SAF-Holland analysts - going out to 2028, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for SAF-Holland you should be aware of.
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