Yahoo Finance Koenig & Bauer AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Shareholders will be ecstatic, with their stake up 27% over the past week following Koenig & Bauer AG's (ETR:SKB) latest third-quarter results. It looks like a pretty bad result, all things considered. Although revenues of €314m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 22% to hit €0.28 per share. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Koenig & Bauer
Taking into account the latest results, the most recent consensus for Koenig & Bauer from three analysts is for revenues of €1.22b in 2023 which, if met, would be a modest 7.9% increase on its sales over the past 12 months. Koenig & Bauer is also expected to turn profitable, with statutory earnings of €1.46 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.22b and earnings per share (EPS) of €1.30 in 2023. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the nice gain to earnings per share expectations following these results.
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.6% to €22.17. 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 Koenig & Bauer analyst has a price target of €25.00 per share, while the most pessimistic values it at €17.50. 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.
Taking a look 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. One thing stands out from these estimates, which is that Koenig & Bauer is forecast to grow faster in the future than it has in the past, with revenues expected to display 6.3% annualised growth until the end of 2023. If achieved, this would be a much better result than the 2.6% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 4.0% annually. Not only are Koenig & Bauer's revenues expected to improve, it seems that the analysts are also expecting it 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 Koenig & Bauer 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Koenig & Bauer going out to 2024, and you can see them free on our platform here..
You can also view our analysis of Koenig & Bauer's balance sheet, and whether we think Koenig & Bauer is carrying too much debt, for free on our platform here.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
