Shareholders of SMA Solar Technology AG( ETR:S92 ) will be pleased this week, given that the stock price is up 18% to €46.50 following its latest full-year results. The results overall were pretty much dead in line with analyst forecasts; revenues were €1.5b and statutory losses were €5.22 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, SMA Solar Technology's five analysts are now forecasting revenues of €1.58b in 2026. This would be an okay 4.1% improvement in revenue compared to the last 12 months. SMA Solar Technology is also expected to turn profitable, with statutory earnings of €1.85 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.58b and earnings per share (EPS) of €1.83 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for SMA Solar Technology
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to €37.20. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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. There are some variant perceptions on SMA Solar Technology, with the most bullish analyst valuing it at €43.00 and the most bearish at €28.00 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that SMA Solar Technology's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.1% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 11% per year. Factoring in the forecast slowdown in growth, it seems obvious that SMA Solar Technology is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on SMA Solar Technology. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for SMA Solar Technology going out to 2028, and you can see them free on our platform here. .
You should always think about risks though. Case in point, we've spotted 1 warning sign for SMA Solar Technology you should be aware of.
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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.
