In This Article:
Shareholders might have noticed that Schweiter Technologies AG (VTX:SWTQ) filed its yearly result this time last week. The early response was not positive, with shares down 8.0% to CHF723 in the past week. It was an okay result overall, with revenues coming in at CHF1.2b, roughly what the analysts had been expecting. 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.
View our latest analysis for Schweiter Technologies
Taking into account the latest results, Schweiter Technologies' six analysts currently expect revenues in 2023 to be CHF1.20b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 46% to CHF29.60. In the lead-up to this report, the analysts had been modelling revenues of CHF1.19b and earnings per share (EPS) of CHF35.71 in 2023. 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 CHF828, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Schweiter Technologies, with the most bullish analyst valuing it at CHF947 and the most bearish at CHF650 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Schweiter Technologies shareholders.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Schweiter Technologies' revenue growth is expected to slow, with the forecast 0.3% annualised growth rate until the end of 2023 being well below the historical 4.3% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Schweiter Technologies.