SES S.A. (EPA:SESG) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. Revenues and losses per share were both better than expected, with revenues of €870m leading estimates by 3.4%. Statutory losses were smaller than the analystsexpected, coming in at €0.01 per share. 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. We’ve gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Following last week’s earnings report, SES’ twelve analysts are forecasting 2027 revenues to be €3.41b, approximately in line with the last 12 months. Before this latest report, the consensus had been expecting revenues of €3.40b and €0.23 per share in losses. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.
Check out our latest analysis for SES
There’s been no real change to the consensus price target of €7.55, with SES seemingly executing in line with expectations. 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. There are some variant perceptions on SES, with the most bullish analyst valuing it at €11.30 and the most bearish at €4.20 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the SES’ past performance and to peers in the same industry. We would highlight that SES’ revenue growth is expected to slow, with the forecast 1.3% annualised growth rate until the end of 2027 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.5% per year. Factoring in the forecast slowdown in growth, it seems obvious that SES is also expected to grow slower than other industry participants.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €7.55, with the latest estimates not enough to have an impact on their price targets.
We have estimates for SES from its twelve analysts 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 SES you should be aware of, and 2 of them are potentially serious.
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