Earnings Beat: AIXTRON SE (ETR:AIXA) Just Beat Analyst Forecasts, And Analysts Have Been Lifting Their Forecasts
It's been a pretty great week for AIXTRON SE (ETR:AIXA) shareholders, with its shares surging 14% to €32.34 in the week since its latest quarterly results. Results were roughly in line with estimates, with revenues of €184m and statutory earnings per share of €0.31. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from AIXTRON's 14 analysts is for revenues of €859.2m in 2027. This reflects a sizeable 58% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 104% to €1.46. Yet prior to the latest earnings, the analysts had been anticipated revenues of €815.3m and earnings per share (EPS) of €1.34 in 2027. 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.
See our latest analysis for AIXTRON
Despite these upgrades,the analysts have not made any major changes to their price target of €48.47, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic AIXTRON analyst has a price target of €77.00 per share, while the most pessimistic values it at €39.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting AIXTRON's growth to accelerate, with the forecast 44% annualised growth to the end of 2027 ranking favourably alongside historical growth of 5.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 14% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect AIXTRON to grow faster 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 AIXTRON following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. The consensus price target held steady at €48.47, 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 AIXTRON. Long-term earnings power is much more important than next year's profits. We have forecasts for AIXTRON going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 1 warning sign for AIXTRON that you need to take into consideration.
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