Compagnie Générale des Établissements Michelin Société en commandite par actions Just Missed EPS By 16%: Here's What Analysts Think Will Happen Next
The half-year results for Compagnie Générale des Établissements Michelin Société en commandite par actions (EPA:ML) were released last week, making it a good time to revisit its performance. Revenues were in line with forecasts, at €13b, although statutory earnings per share came in 16% below what the analysts expected, at €1.09 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Compagnie Générale des Établissements Michelin Société en commandite par actions after the latest results.
Taking into account the latest results, the most recent consensus for Compagnie Générale des Établissements Michelin Société en commandite par actions from 14 analysts is for revenues of €26.4b in 2026. If met, it would imply a modest 3.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 5.2% to €2.46. Before this earnings report, the analysts had been forecasting revenues of €26.5b and earnings per share (EPS) of €2.53 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.
The consensus price target held steady at €34.68, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Compagnie Générale des Établissements Michelin Société en commandite par actions at €40.00 per share, while the most bearish prices it at €28.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Compagnie Générale des Établissements Michelin Société en commandite par actions' past performance and to peers in the same industry. The analysts are definitely expecting Compagnie Générale des Établissements Michelin Société en commandite par actions' growth to accelerate, with the forecast 6.0% annualised growth to the end of 2026 ranking favourably alongside historical growth of 1.5% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 3.9% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Compagnie Générale des Établissements Michelin Société en commandite par actions is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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. At Simply Wall St, we have a full range of analyst estimates for Compagnie Générale des Établissements Michelin Société en commandite par actions going out to 2028, 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 Compagnie Générale des Établissements Michelin Société en commandite par actions you should know about.
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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.