Signify N.V. (AMS:LIGHT) shareholders are probably feeling a little disappointed, since its shares fell 2.8% to €21.86 in the week after its latest annual results. The result was positive overall - although revenues of €6.1b were in line with what the analysts predicted, Signify surprised by delivering a statutory profit of €2.57 per share, modestly greater than expected. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Signify

Taking into account the latest results, the consensus forecast from Signify's ten analysts is for revenues of €6.31b in 2025. This reflects a reasonable 2.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.9% to €2.73. Before this earnings report, the analysts had been forecasting revenues of €6.30b and earnings per share (EPS) of €2.67 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of €29.06, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Signify at €42.00 per share, while the most bearish prices it at €18.32. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Signify's growth to accelerate, with the forecast 2.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.8% annually. So it's clear that despite the acceleration in growth, Signify is expected to grow meaningfully slower than the industry average.

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 Signify's revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Signify going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Signify that we have uncovered.

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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.