Shareholders might have noticed that SKAN Group AG( VTX:SKAN ) filed its yearly result this time last week. The early response was not positive, with shares down 2.9% to CHF42.60 in the past week. It was a credible result overall, with revenues of CHF333m and statutory earnings per share of CHF0.72 both in line with analyst estimates, showing that SKAN Group is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, SKAN Group's three analysts are now forecasting revenues of CHF400.9m in 2026. This would be a major 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 114% to CHF1.55. In the lead-up to this report, the analysts had been modelling revenues of CHF418.0m and earnings per share (EPS) of CHF1.67 in 2026. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.
View our latest analysis for SKAN Group
It'll come as no surprise then, to learn that the analysts have cut their price target 7.0% to CHF66.00. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values SKAN Group at CHF67.00 per share, while the most bearish prices it at CHF65.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry . It's clear from the latest estimates that SKAN Group's rate of growth is expected to accelerate meaningfully, with the forecast 20% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 12% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 11% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that SKAN Group is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for SKAN Group. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for SKAN Group going out to 2028, and you can see them free on our platform here. .
We don't want to rain on the parade too much, but we did also find 1 warning sign for SKAN Group that you need to be mindful of.
Have feedback on this article? Concerned about the content? Get in touch
with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature.
We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice.
It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
