16-03-2025
Adecco Group AG (VTX:ADEN) Just Reported Yearly Earnings: Have Analysts Changed Their Mind On The Stock?
Investors in Adecco Group AG (VTX:ADEN) had a good week, as its shares rose 3.6% to close at CHF28.36 following the release of its annual results. It was a credible result overall, with revenues of €23b and statutory earnings per share of €1.80 both in line with analyst estimates, showing that Adecco Group is executing in line with expectations. 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.
See our latest analysis for Adecco Group
Following last week's earnings report, Adecco Group's 14 analysts are forecasting 2025 revenues to be €23.2b, approximately in line with the last 12 months. Statutory earnings per share are predicted to bounce 20% to €2.17. In the lead-up to this report, the analysts had been modelling revenues of €23.2b and earnings per share (EPS) of €2.16 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 CHF27.91, suggesting that the company has met expectations in its recent result. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Adecco Group analyst has a price target of CHF41.11 per share, while the most pessimistic values it at CHF19.48. 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. It's pretty clear that there is an expectation that Adecco Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 0.3% growth on an annualised basis. This is compared to a historical growth rate of 3.0% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Adecco Group.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.
With that in mind, we wouldn't be too quick to come to a conclusion on Adecco Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Adecco Group analysts - going out to 2027, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Adecco Group that you should be aware of.
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