Givaudan SA Just Released Its Annual Earnings: Here's What Analysts Think

As you might know, Givaudan SA (VTX:GIVN) recently reported its full-year numbers. It looks like the results were a bit of a negative overall. While revenues of CHF6.2b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.9% to hit CHF75.59 per share. This is an important time for investors, as they can track a company's performance in its report, look at what top analysts 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 analysts are expecting for next year.

Check out our latest analysis for Givaudan

After the latest results, the 21 analysts covering Givaudan are now predicting revenues of CHF6.69b in 2020. If met, this would reflect an okay 7.8% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to ascend 19% to CHF90.30. In the lead-up to this report, analysts had been modelling revenues of CHF6.67b and earnings per share (EPS) of CHF91.01 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of CHF2,688, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Givaudan at CHF3,557 per share, while the most bearish prices it at CHF1,700. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

Another way to assess these estimates is by comparing them to past performance, and seeing whether analysts are more or less bullish relative to other companies in the market. Next year brings more of the same, according to analysts, with revenue forecast to grow 7.8%, in line with its 7.4% annual growth over the past five years. Compare this with the wider market, which analyst estimates (in aggregate) suggest will see revenues grow 5.3% next year. So although Givaudan is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider market.

The Bottom Line

The most obvious conclusion from these results is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at CHF2,688, with the latest estimates not enough to have an impact on analysts' estimated valuations.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At Simply Wall St, we have a full range of analyst estimates for Givaudan going out to 2024, and you can see them free on our platform here..

You can also view our analysis of Givaudan's balance sheet, and whether we think Givaudan is carrying too much debt, for free on our platform here.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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