Rosenbauer International AG (VIE:ROS) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Rosenbauer International AG (VIE:ROS) shareholders, because the company has just released its latest full-year results, and the shares gained 2.7% to €52.80. Rosenbauer International reported €1.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €4.26 beat expectations, being 4.8% higher than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Rosenbauer International

Taking into account the latest results, Rosenbauer International's three analysts currently expect revenues in 2021 to be €1.05b, approximately in line with the last 12 months. Statutory per share are forecast to be €4.25, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €1.05b and earnings per share (EPS) of €4.24 in 2021. 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.

The consensus price target rose 7.6% to €56.33despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Rosenbauer International's earnings by assigning a price premium. 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. There are some variant perceptions on Rosenbauer International, with the most bullish analyst valuing it at €65.00 and the most bearish at €52.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Rosenbauer International is an easy business to forecast or the the analysts are all using similar assumptions.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 0.3% by the end of 2021. This indicates a significant reduction from annual growth of 5.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 6.3% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Rosenbauer International is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Rosenbauer International's revenues are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Rosenbauer International analysts - going out to 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Rosenbauer International you should be aware of.

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