Quadient SAS Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models

Investors in Quadient SAS (EPA:QDT) had a good week, as its shares rose 2.1% to close at €14.10 following the release of its annual results. It looks like a pretty bad result, all things considered. Although revenues of €1.1b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 94% to hit €0.15 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Quadient SAS

Following the recent earnings report, the consensus from six analysts covering Quadient SAS is for revenues of €1.08b in 2021, implying a measurable 5.5% decline in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 1595% to €2.54. Before this earnings report, the analysts had been forecasting revenues of €1.14b and earnings per share (EPS) of €3.19 in 2021. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a large cut to earnings per share estimates.

It'll come as no surprise then, to learn thatthe analysts have cut their price target 8.1% to €22.77. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Quadient SAS at €29.00 per share, while the most bearish prices it at €14.50. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue shrink 1.3% per year. While this is interesting, Quadient SAS', revenues are still expected to shrink next year, and at a faster rate than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Quadient SAS. Unfortunately they also downgraded their revenue estimates, and our analysts estimates suggest that Quadient SAS is still expected to perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Quadient SAS' future valuation.

With that in mind, we wouldn't be too quick to come to a conclusion on Quadient SAS. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Quadient SAS analysts - going out to 2023, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 6 warning signs with Quadient SAS (at least 2 which make us uncomfortable) , and understanding them should be part of your investment process.

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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