Lucas Bols NV (AMS:BOLS) has just been reported and analysts have a price target of €10.00

Investors in Lucas Bols NV (AMS:BOLS) had a good week as its shares rose 5.1% to close at €8.58 after reporting its annual results. Revenues were 3.6% lower than expected and amounted to EUR 84 million. Statutory earnings per share were relatively better, with earnings per share of €0.74 roughly in line with analyst estimates. The analysts typically update their forecasts every earnings report, and based on their estimates, we can judge whether their view of the company has changed or whether there are any new concerns we should be aware of. We thought readers would be interested in the latest (statutory) analyst forecasts for next year following the earnings results.

See our latest analysis for Lucas Bols

Taking into account the latest results, the dual analysts covering Lucas Bols have provided a consensus revenue estimate for 2021 of €81.4m, which would reflect a noticeable 3.1% decline in sales over the last 12 months. Statutory earnings per share are expected to fall by 47% to €0.39 over the same period. However, prior to the release of the latest results, the analysts were predicting revenues of €74.0m and earnings per share (EPS) of €0.76 in 2021. So it’s quite clear that the analysts have mixed views on Lucas Bols following the latest results; even though they increased revenue, it came at the cost of significantly lowering earnings per share expectations.

The consensus price target fell 22% to €10.00, suggesting analysts are primarily focused on earnings as a value driver for this company.

Looking at the bigger picture now, one way we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would like to emphasize that the sales trend is expected to reverse, with revenue forecast to decline by 3.1%, which is a notable change from historical growth of 3.9% over the last five years. However, our data shows that, according to forecasts, the revenues of other companies (covered by analysts’ analysis) from the same industry will grow by 4.4% annually in the foreseeable future. It’s quite clear that Lucas Bols’ earnings are expected to significantly underperform the industry as a whole.

Conclusion

The biggest concern is that analysts have lowered earnings per share estimates, suggesting that Lucas Bols may face business difficulties. Fortunately, they also increased their revenue estimates, although our data suggests that sales will be worse than the broader industry. The consensus price target has dropped significantly, and the latest results appear to have failed to reassure analysts, leading to a lower estimate of Lucas Bols’ future valuation.

With that in mind, we wouldn’t be in a hurry to draw any conclusions regarding Lucas Bols. Long-term earnings power is much more important than next year’s earnings. At least one analyst has provided forecasts through 2023, which you can view for free on our platform here.

Before you take the next step, you should know about 3 warning signs for Lucas Bols that we discovered.

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This article by Simply Wall St is of a general nature. 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 long-term, focused analysis based on fundamental data. Please note that our analysis may not reflect the latest price-sensitive company announcements or qualitative content. Simply Wall St has no position in any of the stocks mentioned. Thank you for reading.