Earnings Report: Swiss Prime Site AG Missed Revenue Estimates By 15%
The interim results for Swiss Prime Site AG (VTX:SPSN) were released last week, making it a good time to revisit its performance. Revenues were CHF202m, 15% below analyst expectations, although losses didn't appear to worsen significantly, with a per-share statutory loss of CHF4.79 being in line with what the analysts forecast. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for Swiss Prime Site from seven analysts is for revenues of CHF626.4m in 2026. If met, it would imply a decent 12% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 13% to CHF5.81. Before this earnings report, the analysts had been forecasting revenues of CHF577.6m and earnings per share (EPS) of CHF5.49 in 2026. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.
View our latest analysis for Swiss Prime Site
Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of CHF134, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 Swiss Prime Site analyst has a price target of CHF160 per share, while the most pessimistic values it at CHF105. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
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. For example, we noticed that Swiss Prime Site's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 25% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 6.0% a year over the past five years. What's also interesting is that our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue decline 2.8% annually for the foreseeable future. So although Swiss Prime Site is expected to return to growth, it's also expected to grow revenues during a time when the wider industry is estimated to see revenue decline.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Swiss Prime Site's earnings potential next year. Fortunately, they also upgraded their revenue estimates, and our data indicates it is expected to perform better than the wider industry. The consensus price target held steady at CHF134, 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 Swiss Prime Site. Long-term earnings power is much more important than next year's profits. We have forecasts for Swiss Prime Site going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Swiss Prime Site (1 makes us a bit uncomfortable!) that we have uncovered.
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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.