Investors in Sign NV (AMS:LIGHT) had a good week, with shares rising 9.6% to €24.18 after publishing its third quarter results. Overall, it seems a credible result. Although revenues of €1.5 billion were in line with analysts’ forecasts, Signify surprised with a statutory profit of €0.84 per share, a remarkable 18% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there has been a strong change in the company’s prospects, or if it is business as usual. With this in mind, we’ve collected the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Signify

Taking into account the latest results, Signify’s twelve analysts currently expect sales to reach €6.32 billion in 2025, roughly in line with the last twelve months. Statutory earnings per share are expected to increase by 24% to €2.64. Before this earnings report, the analysts were forecasting revenues of €6.36 billion and earnings per share (EPS) of €2.61 in 2025. So it’s pretty clear that while the analysts have updated their estimates, there’s no major change in expectations has taken place. the company based on the latest results.

The analysts reconfirmed their price target of €30.31, showing that the company is performing well and in line with expectations. However, it may be unwise to fixate on a single price target, as the consensus target is essentially 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 divergent opinions on the company’s valuation. Currently, the most bullish analyst values ​​Signify at €42.00 per share, while the most bearish values ​​it at €23.50. Notice the wide gap between analyst price targets? This implies to us that there is a fairly wide range of possible scenarios for the underlying activities.

Looking at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We highlight that Signify’s revenue growth is expected to slow, with the projected annual growth rate of 1.2% through the end of 2025 well below the historical growth rate of 1.6% annually over the past five years. By comparison, the other companies in this sector with analyst coverage are expected to grow their revenue at 7.0% per year. Taking into account the forecast slowdown in growth, it seems clear that Signify is also expected to grow more slowly than other industry participants.

The bottom line

The most obvious conclusion is that there has been no major change in the company’s prospects in recent times, with the analysts keeping their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts have also reaffirmed their revenue estimates, suggesting they are in line with expectations. Although our data suggests that Signify’s revenue is expected to underperform the broader industry. The consensus price target remained stable at €30.31, with the latest estimates not being enough to have an impact on their price targets.

With that in mind, we wouldn’t jump to a conclusion about Signify. 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 Signify going out to 2026, and you can see them for free on our platform here.

And what about the risks? Every company has them, and we’ve seen them 2 warning signs for Signify you should know.

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This article from Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts using only an unbiased methodology and our articles are not intended as financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. We aim to provide you with targeted, long-term analysis based on fundamental data. Please note that our analysis may not take into account the latest price-sensitive company announcements or quality material. Simply Wall St has no positions in the stocks mentioned.