Earnings Update: SMA Solar Technology AG (ETR:S92) Reports Annual Results, Analysts Update Forecasts

1 week ago SMA Solar Technology AG (ETR:S92) has released strong annual numbers that could lead to a re-pricing of the share price. The company performed well overall, with sales reaching 1.9 billion euros, 2.3% higher than analysts' expectations. Statutory earnings per share (EPS) amounted to EUR 6.50, approximately 3.5% higher than analysts' expectations. The analysts have updated their earnings model following these results, but it would be good to know whether they think there's been a big change to the company's outlook, or if it's business as usual. So we've gathered the latest post-earnings statutory consensus forecasts to see what's in store for next year.

Check out our latest analysis for SMA Solar Technology.

Taking into account the latest results, the current consensus from SMA Solar Technology's 6 analysts is for 2024 revenue of €1.99b. This reflects his reasonable 4.7% increase in earnings over the past 12 months. Statutory earnings per share are expected to fall by 30% to €4.54 for the same period. Before the results were released, analysts had expected 2024 sales of 1.99 billion euros and earnings per share (EPS) of 4.15 euros. Analysts appear to be more bullish on the business, judging by the new earnings per share estimates.

The consensus price target remains unchanged at €66.33, suggesting that the improved earnings outlook is not expected to have a long-term impact on shareholder value creation. The consensus price target is just the average of the individual analyst targets, so it's useful to see how wide the range of underlying forecasts is. Currently, the most bullish analyst values ​​the SMA Solar Technology stock at 76.00 euros per share, while the most bearish values ​​it at 60.00 euros. This is a very narrow spread of estimates, suggesting either that SMA Solar Technology is an easy company to value, or that the analysts are relying heavily on some key assumptions.

Looking at the bigger picture here, one way to understand these forecasts is to see how they compare to past performance and industry growth forecasts. We would like to emphasize that SMA Solar Technology's revenue growth is expected to slow, with the forecast annual growth rate of 4.7% to the end of 2024 being significantly lower than the historical annual growth rate of 14% over the past five years. Masu. Compare this to other companies in the industry, which are expected to have a combined annual revenue growth of 8.3% (analyst forecasts). So it's clear that while revenue growth is expected to slow, the broader industry is expected to grow faster than SMA Solar Technology.

conclusion

The biggest takeaway for us is the improvement in consensus earnings per share, suggesting a clear improvement in sentiment around SMA Solar Technology's earnings potential next year. Happily, the analysts also reaffirmed their earnings forecasts, suggesting things are in line with expectations. However, our data suggests that SMA Solar Technology's earnings are expected to be worse than the broader industry. There was no actual change to the consensus target price, suggesting that the intrinsic value of the business has not changed significantly at the latest estimate.

With this in mind, we think the long-term trajectory of the business is far more important for investors to consider. His forecasts for SMA Solar Technology to 2026 are available for free on this platform.

However, before you get too carried away, here's what we discovered. 3 warning signs for SMA Solar Technology (2 cannot be ignored!) This should be noted.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodologies, and the articles are not intended as financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.