Andritz AG (VIE:ANDR) Just Reported Half-Year Earnings: Have Analysts Changed Their Mind On The Stock?

The half-year results for Andritz AG (VIE:ANDR) were released last week, making it a good time to revisit its performance. Results were roughly in line with estimates, with revenues of €4.0b and statutory earnings per share of €2.24. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Andritz after the latest results.

Check out our latest analysis for Andritz

Taking into account the latest results, Andritz's eight analysts currently expect revenues in 2024 to be €8.66b, approximately in line with the last 12 months. Statutory per share are forecast to be €5.04, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €8.63b and earnings per share (EPS) of €5.10 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €71.36. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Andritz, with the most bullish analyst valuing it at €85.00 and the most bearish at €53.00 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Andritz shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Andritz's past performance and to peers in the same industry. We would highlight that Andritz's revenue growth is expected to slow, with the forecast 2.7% 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 4.9% 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 Andritz.

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 Andritz's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €71.36, with the latest estimates not enough to have an impact on their price targets.

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 Andritz going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Andritz you should know about.

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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.

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