Analyst Estimates: Here’s What Brokers Think Of Lectra SA (EPA:LSS) After Its First-Quarter Report
Lectra SA (EPA:LSS) shareholders are probably feeling a little disappointed, since its shares fell 2.1% to €32.85 in the week after its latest first-quarter results. Lectra reported in line with analyst predictions, delivering revenues of €130m and statutory earnings per share of €0.89, suggesting the business is executing well and in line with its plan. 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. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Lectra
Following the latest results, Lectra’s three analysts are now forecasting revenues of €552.8m in 2024. This would be a meaningful 14% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 38% to €1.22. Before this earnings report, the analysts had been forecasting revenues of €553.4m and earnings per share (EPS) of €1.38 in 2024. So there’s definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at €37.13, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 Lectra, with the most bullish analyst valuing it at €41.00 and the most bearish at €33.00 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Lectra’s past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 20% growth on an annualised basis. That is in line with its 17% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.0% per year. So although Lectra is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €37.13, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Lectra going out to 2026, and you can see them free on our platform here.
You can also see whether Lectra is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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Find out whether Lectra is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
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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.
