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Earnings Miss: Vossloh AG Missed EPS By 13% And Analysts Are Revising Their Forecasts

It's been a good week for Vossloh AG (ETR:VOS) shareholders, because the company has just released its latest full-year results, and the shares gained 8.8% to €44.95. Statutory earnings per share of €2.21 unfortunately missed expectations by 13%, although it was encouraging to see revenues of €1.2b exceed expectations by 2.0%. 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.

Check out our latest analysis for Vossloh

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earnings-and-revenue-growth

Taking into account the latest results, Vossloh's eight analysts currently expect revenues in 2024 to be €1.22b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 17% to €2.92. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.23b and earnings per share (EPS) of €2.93 in 2024. 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.

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There were no changes to revenue or earnings estimates or the price target of €49.97, suggesting that the company has met expectations in its recent result. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Vossloh, with the most bullish analyst valuing it at €56.00 and the most bearish at €42.00 per share. This is a very narrow spread of estimates, implying either that Vossloh is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We would highlight that Vossloh's revenue growth is expected to slow, with the forecast 0.6% annualised growth rate until the end of 2024 being well below the historical 6.5% 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 3.3% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Vossloh.

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. 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 €49.97, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Vossloh going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Vossloh , and understanding it should be part of your investment process.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.