Sartorius Stedim Biotech S.A. Just Missed EPS By 11%: Here's What Analysts Think Will Happen Next
Shareholders might have noticed that Sartorius Stedim Biotech S.A. (EPA:DIM) filed its half-yearly result this time last week. The early response was not positive, with shares down 9.9% to €167 in the past week. Sartorius Stedim Biotech beat revenue forecasts by a solid 17% to hit €1.8b. Statutory earnings per share fell 11% short of expectations, at €0.95. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Sartorius Stedim Biotech's 13 analysts is for revenues of €3.13b in 2026. This would reflect a credible 4.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to bounce 27% to €3.83. Before this earnings report, the analysts had been forecasting revenues of €3.17b and earnings per share (EPS) of €3.93 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
See our latest analysis for Sartorius Stedim Biotech
The consensus price target held steady at €232, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Sartorius Stedim Biotech analyst has a price target of €262 per share, while the most pessimistic values it at €208. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Sartorius Stedim Biotech is an easy business to forecast or the the analysts are all using similar assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Sartorius Stedim Biotech's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 8.4% growth to the end of 2026 on an annualised basis. That is well above its historical decline of 0.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 9.7% annually. So while Sartorius Stedim Biotech's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Sartorius Stedim Biotech 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 Sartorius Stedim Biotech that you need to take into consideration.
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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.