V-ZUG Holding AG (VTX:VZUG) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. Statutory earnings per share fell badly short of expectations, coming in at CHF1.82, some 24% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CHF585m. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
See our latest analysis for V-ZUG Holding
Following last week's earnings report, V-ZUG Holding's two analysts are forecasting 2024 revenues to be CHF597.1m, approximately in line with the last 12 months. Statutory earnings per share are predicted to leap 75% to CHF3.18. In the lead-up to this report, the analysts had been modelling revenues of CHF611.8m and earnings per share (EPS) of CHF4.59 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
The consensus price target fell 15% to CHF87.00, with the weaker earnings outlook clearly leading valuation estimates.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that V-ZUG Holding's revenue growth is expected to slow, with the forecast 2.0% annualised growth rate until the end of 2024 being well below the historical 3.4% 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 4.7% per year. Factoring in the forecast slowdown in growth, it seems obvious that V-ZUG Holding is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for V-ZUG Holding. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of V-ZUG Holding's future valuation.