SMA Solar Technology AG Just Beat EPS By 263%: Here's What Analysts Think Will Happen Next
It's been a good week for SMA Solar Technology AG (ETR:S92) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.3% to €58.00. Revenues of €346m fell slightly short of expectations, but earnings were a definite bright spot, with statutory per-share profits of €2.14 an impressive 263% ahead of estimates. 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.
Taking into account the latest results, the consensus forecast from SMA Solar Technology's five analysts is for revenues of €1.66b in 2026. This reflects a meaningful 9.5% improvement in revenue compared to the last 12 months. SMA Solar Technology is also expected to turn profitable, with statutory earnings of €3.56 per share. In the lead-up to this report, the analysts had been modelling revenues of €1.65b and earnings per share (EPS) of €2.60 in 2026. Although the revenue estimates have not really changed, we can see there's been a very substantial lift in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.
Check out our latest analysis for SMA Solar Technology
The consensus price target rose 5.4% to €66.40, suggesting that higher earnings estimates flow through to the stock's valuation as well. 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. The most optimistic SMA Solar Technology analyst has a price target of €89.00 per share, while the most pessimistic values it at €50.00. 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. The analysts are definitely expecting SMA Solar Technology's growth to accelerate, with the forecast 20% annualised growth to the end of 2026 ranking favourably alongside historical growth of 11% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 12% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect SMA Solar Technology to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards SMA Solar Technology following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple SMA Solar Technology analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - SMA Solar Technology has 1 warning sign we think 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.