Analysts Have Made A Financial Statement On LEM Holding SA's (VTX:LEHN) Second-Quarter Report
Shareholders might have noticed that LEM Holding SA (VTX:LEHN) filed its second-quarter result this time last week. The early response was not positive, with shares down 5.4% to CHF527 in the past week. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 5.7%to hit CHF89m. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, LEM Holding's five analysts are now forecasting revenues of CHF327.7m in 2027. This would be a credible 4.4% improvement in revenue compared to the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CHF329.2m and earnings per share (EPS) of CHF27.45 in 2027. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.
See our latest analysis for LEM Holding
There's been no real change to the consensus price target of CHF587, with LEM Holding seemingly executing in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values LEM Holding at CHF680 per share, while the most bearish prices it at CHF475. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the LEM Holding's past performance and to peers in the same industry. One thing stands out from these estimates, which is that LEM Holding is forecast to grow faster in the future than it has in the past, with revenues expected to display 8.9% annualised growth until the end of 2027. If achieved, this would be a much better result than the 5.9% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 10% annually. So it looks like LEM Holding is expected to grow at about the same rate as the wider industry.
The Bottom Line
The clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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.
We have estimates for LEM Holding from its five analysts out to 2029, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for LEM Holding that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.