Last week saw the newest half-yearly earnings release from Tornos Holding AG (VTX:TOHN), an important milestone in the company's journey to build a stronger business. Results overall were respectable, with statutory earnings of CHF0.73 per share roughly in line with what the analyst had forecast. Revenues of CHF96m came in 6.4% ahead of analyst predictions. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year.
See our latest analysis for Tornos Holding
Following last week's earnings report, Tornos Holding's sole analyst are forecasting 2023 revenues to be CHF180.0m, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CHF0.60, roughly flat on the last 12 months. Yet prior to the latest earnings, the analyst had been anticipated revenues of CHF175.0m and earnings per share (EPS) of CHF0.53 in 2023. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a solid gain to earnings per share in particular.
With these upgrades, we're not surprised to see that the analyst has lifted their price target 8.3% to CHF6.50per share.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Tornos Holding's past performance and to peers in the same industry. We would also point out that the forecast 3.8% annualised revenue decline to the end of 2023 is better than the historical trend, which saw revenues shrink 4.9% annually 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 revenue grow 5.1% per year. So it's pretty clear that, while it does have declining revenues, the analyst also expect Tornos Holding to suffer worse than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Tornos Holding's earnings potential next year. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.