Investors in Evotec SE (ETR:EVT) had a good week, with its shares rising 4.5% to close at €5.80 following the release of its half-year results. Overall, it was a pretty poor result; while revenues were in line with expectations at €391 million, statutory losses exploded to €0.54 per share. Following the results release, analysts have updated their earnings model, and it would be good to know if they think the company’s outlook has changed a lot, or if it’s business as usual. Therefore, we’ve gathered the latest post-result forecasts to see what estimates are suggesting is in store for next year.
Check out our latest analysis for Evotec
Taking into account the latest results, the current consensus of Evotec’s twelve analysts is for revenues of €829.8m in 2024. This would represent a modest 5.2% increase in revenues compared to the last 12 months. Losses are expected to narrow significantly, shrinking by 54% to €0.45. However, prior to the release of the latest results, analysts had been forecasting revenues of €866.8m and a loss of €0.36 per share in 2024. While revenue estimates for this year have declined, there has also been a significant increase in loss per share expectations, suggesting that the consensus has a somewhat mixed view on the stock.
The consensus price target fell 14% to €15.40. Analysts are obviously worried about the company due to weaker revenue and earnings outlooks. However, this is not the only conclusion we can draw from this data as some investors also like to consider the range of estimates when evaluating analysts’ price targets. There are some differing views on Evotec. The most optimistic analyst values the company at €30.00 and the most pessimistic at €4.00 per share. Therefore, we would not give too much credence to the analysts’ price targets in this case as there are obviously very different views on what performance this company can achieve. With that in mind, we would not rely too much on the consensus price target as it is only an average and analysts obviously have very different views on the company.
Of course, one can also look at these forecasts in the context of the industry itself. We would like to highlight that Evotec’s revenue growth is expected to slow down. The forecast annual growth rate of 11% until the end of 2024 is well below the historical growth of 15% per year over the past five years. Compare this to the 46 other companies in this industry with analyst coverage, which are forecast to grow revenues by 11% per year. Taking the forecast growth slowdown into account, it looks like Evotec is expected to grow at about the same pace as the wider industry.
The conclusion
Most importantly, analysts have raised their loss per share estimates for next year. Unfortunately, they have also lowered their revenue forecasts, but the company is still expected to grow at roughly the same pace as the industry itself. In addition, analysts have also lowered their price targets, suggesting that recent news has led to greater pessimism about the company’s intrinsic value.
Continuing with this thought, we believe the company’s long-term prospects are much more relevant than next year’s earnings. At Simply Wall St, we have a full range of analyst estimates for Evotec out to 2026, and you can see them free on our platform here.
You should also be aware of the 1 warning sign we discovered it at Evotec.
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This Simply Wall St article is of a general nature. We comment solely on the basis of historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.
