Analysts Have Lowered Expectations For Kapsch TrafficCom AG (VIE:KTCG) After Its Latest Results

Kapsch TrafficCom AG (VIE:KTCG) missed earnings with its latest full-year results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of €530m missing analyst predictions by 5.5%. Worse, the business reported a statutory loss of €0.48 per share, much larger than the analysts had forecast prior to the result. 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.

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Taking into account the latest results, the current consensus, from the two analysts covering Kapsch TrafficCom, is for revenues of €509.1m in 2026. This implies a measurable 4.0% reduction in Kapsch TrafficCom's revenue over the past 12 months. Earnings are expected to improve, with Kapsch TrafficCom forecast to report a statutory profit of €0.36 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €573.9m and earnings per share (EPS) of €0.61 in 2026. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a large cut to earnings per share numbers as well.

Check out our latest analysis for Kapsch TrafficCom

The consensus price target fell 8.7% to €10.50, with the weaker earnings outlook clearly leading valuation estimates.

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. Over the past five years, revenues have declined around 2.9% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 4.0% decline in revenue until the end of 2026. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 8.0% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Kapsch TrafficCom to suffer worse than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Kapsch TrafficCom's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Kapsch TrafficCom going out as far as 2028, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Kapsch TrafficCom that you need to be mindful of.

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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.