Aalberts N.V. (AMS:AALB) Annual Results Just Came Out: Here's What Analysts Are Forecasting For This Year

Investors in Aalberts N.V. (AMS:AALB) had a good week, as its shares rose 7.9% to close at €40.20 following the release of its annual results. Aalberts reported €3.3b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €2.85 beat expectations, being 4.6% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Aalberts

Taking into account the latest results, the current consensus, from the six analysts covering Aalberts, is for revenues of €3.25b in 2024. This implies a perceptible 2.3% reduction in Aalberts' revenue over the past 12 months. Statutory earnings per share are forecast to dip 4.6% to €2.73 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.29b and earnings per share (EPS) of €2.63 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target was unchanged at €47.71, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. There are some variant perceptions on Aalberts, with the most bullish analyst valuing it at €65.00 and the most bearish at €38.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 2.3% annualised decline to the end of 2024. That is a notable change from historical growth of 4.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 3.7% per year. It's pretty clear that Aalberts' revenues are expected to perform substantially worse 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 Aalberts following these results. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Aalberts going out to 2026, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 1 warning sign for Aalberts you should know about.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.