Shareholders will be ecstatic, with their stake up 28% over the past week following Clariant AG's (VTX:CLN) latest half-year results. Statutory earnings per share fell badly short of expectations, coming in at CHF0.21, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at CHF1.9b. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following last week's earnings report, Clariant's 15 analysts are forecasting 2026 revenues to be CHF3.82b, approximately in line with the last 12 months. Earnings are expected to improve, with Clariant forecast to report a statutory profit of CHF0.64 per share. Before this earnings report, the analysts had been forecasting revenues of CHF3.80b and earnings per share (EPS) of CHF0.64 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for Clariant
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.1% to CHF9.06. It looks as though they previously had some doubts over whether the business would live up to their expectations. 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 Clariant at CHF12.60 per share, while the most bearish prices it at CHF6.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Clariant's past performance and to peers in the same industry. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2026. That would be a definite improvement, given that the past five years have seen revenue shrink 3.6% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.5% per year. Although Clariant's revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Clariant's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Clariant 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 3 warning signs for Clariant 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.