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Bouygues SA Just Missed Earnings - But Analysts Have Updated Their Models
Investors in Bouygues SA (EPA:EN) had a good week, as its shares rose 2.8% to close at €42.29 following the release of its quarterly results. It looks like a pretty bad result, all things considered. Although revenues of €15b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 96% to hit €0.05 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
After the latest results, the eleven analysts covering Bouygues are now predicting revenues of €58.3b in 2027. If met, this would reflect a credible 2.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 87% to €3.73. Yet prior to the latest earnings, the analysts had been anticipated revenues of €58.3b and earnings per share (EPS) of €3.73 in 2027. 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.
See our latest analysis for Bouygues
The analysts reconfirmed their price target of €58.96, showing that the business is executing well and in line with expectations. 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 Bouygues analyst has a price target of €75.00 per share, while the most pessimistic values it at €51.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Bouygues' past performance and to peers in the same industry. We would highlight that Bouygues' revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2027 being well below the historical 8.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 3.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Bouygues.
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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Bouygues' revenue is expected to perform worse than the wider industry. The consensus price target held steady at €58.96, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Bouygues 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 3 warning signs for Bouygues you should be aware of.
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