it’s been a good week for IMCD SA (AMS: IMCD), because the company has just published its latest annual results, and the stock gained 4.3% to € 106. The results are generally honorable, with a statutory profit of € 2.25 per share in line with analysts’ forecasts. The turnover of 2.8 billion euros is 2.4% higher than analysts’ forecasts. This is an important time for investors, as they can follow a company’s performance in its report, look at experts’ forecasts for next year, and see if there has been a change in the company’s expectations. business. Readers will be happy to know that we have aggregated the latest statutory forecast to see if analysts have changed their minds on IMCD after the latest results.
See our latest review for IMCD
Given the latest results, the most recent consensus for IMCD of eleven analysts is revenue of € 3.04 billion in 2021, which, if achieved, would represent a decent increase of 9.1. % of its sales in the last 12 months. Earnings per share should jump 28% to € 2.89. However, before the latest results, analysts were forecasting a turnover of 3.05 billion euros and earnings per share (EPS) of 2.78 euros in 2021. The consensus therefore seems to have become a little more optimistic on IMCD’s profit potential following these results.
The consensus price target remained unchanged at € 109, which implies that the improved earnings outlook should not have a long-term impact on the creation of shareholder value. The consensus price target is only an average of individual analysts’ targets, so it might be helpful to see the breadth of the range of underlying estimates. Currently, the most bullish analyst values IMCD at € 125 per share, while the most bearish values it at € 100.00. This is a very narrow range of estimates, implying either that IMCD is an easy company to value, or – more likely – that analysts rely heavily on certain key assumptions.
One way to get more context on these forecasts is to look at how they stack up against both past performance and the performance of other companies in the same industry. It’s pretty clear that IMCD’s revenue growth is expected to slow significantly, with next year’s revenue expected to increase by 9.1%, compared to a historic growth rate of 13% over the course of the year. over the past five years. By comparison, other companies in this industry covered by analysts are expected to increase their revenue by 4.7% next year. Even after the expected slowdown in growth, it seems clear that IMCD is also expected to grow faster than the industry as a whole.
The bottom line
The most important thing here is that analysts have improved their earnings per share estimates, suggesting that there has been a marked increase in optimism towards IMCD as a result of these results. Fortunately, they also reconfirmed their revenue figures, suggesting that sales are moving according to expectations – and our data suggests that revenue is expected to grow faster than the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to come to a conclusion on IMCD. Long-term earning power is much more important than next year’s profits. We have forecasts for IMCD through 2025, and you can view them for free on our platform here.
We don’t want to rain too much on the parade, but we also found 2 warning signs for IMCD that you need to be aware of.
When trading IMCD or any other investment, use the platform seen by many as the professionals’ gateway to the global market, Interactive brokers. You get the cheapest * trading on stocks, options, futures, forex, bonds and funds from around the world from a single integrated account. Promoted
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
*Interactive Brokers Ranked Least Expensive Broker By StockBrokers.com Online Annual Review 2020
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.