Kapsch TrafficCom AG (VIE:KTCG) Analysts Just Slashed This Year's Estimates

One thing we could say about the analysts on Kapsch TrafficCom AG (VIE:KTCG) - they aren't optimistic, having just made a major negative revision to their near-term (statutory) forecasts for the organization. Both revenue and earnings per share (EPS) forecasts went under the knife, suggesting analysts have soured majorly on the business.

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Following the latest downgrade, the three analysts covering Kapsch TrafficCom provided consensus estimates of €443m revenue in 2026, which would reflect an uncomfortable 9.9% decline on its sales over the past 12 months. Statutory earnings per share are anticipated to drop 13% to €0.81 in the same period. Prior to this update, the analysts had been forecasting revenues of €503m and earnings per share (EPS) of €1.48 in 2026. Indeed, we can see that the analysts are a lot more bearish about Kapsch TrafficCom's prospects, administering a measurable cut to revenue estimates and slashing their EPS estimates to boot.

View our latest analysis for Kapsch TrafficCom

The consensus price target fell 15% to €8.83, with the weaker earnings outlook clearly leading analyst valuation estimates.

Of course, another way to look at these forecasts is to place them into context against the industry itself. Over the past five years, revenues have declined around 1.8% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 13% 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 7.7% 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 biggest issue in the new estimates is that analysts have reduced their earnings per share estimates, suggesting business headwinds lay ahead for Kapsch TrafficCom. Unfortunately analysts also downgraded their revenue estimates, and industry data suggests that Kapsch TrafficCom's revenues are expected to grow slower than the wider market. With a serious cut to this year's expectations and a falling price target, we wouldn't be surprised if investors were becoming wary of Kapsch TrafficCom.

Still, 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 Kapsch TrafficCom going out to 2028, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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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.