In This Article:
As you might know, Brenntag SE (ETR:BNR) recently reported its quarterly numbers. Revenues came in 2.1% below expectations, at €4.1b. Statutory earnings per share were relatively better off, with a per-share profit of €3.71 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
We've discovered 1 warning sign about Brenntag. View them for free.
Taking into account the latest results, Brenntag's 15 analysts currently expect revenues in 2025 to be €16.6b, approximately in line with the last 12 months. Statutory earnings per share are predicted to surge 20% to €4.42. In the lead-up to this report, the analysts had been modelling revenues of €16.8b and earnings per share (EPS) of €4.25 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Brenntag
The consensus price target was unchanged at €72.43, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Brenntag analyst has a price target of €98.00 per share, while the most pessimistic values it at €58.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's pretty clear that there is an expectation that Brenntag's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 2.1% growth on an annualised basis. This is compared to a historical growth rate of 7.4% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.7% 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 Brenntag.
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 Brenntag following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Brenntag's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €72.43, with the latest estimates not enough to have an impact on their price targets.