VERBUND AG Just Recorded A 9.3% Revenue Beat: Here's What Analysts Think

A week ago, VERBUND AG (VIE:VER) came out with a strong set of annual numbers that could potentially lead to a re-rate of the stock. Results were good overall, with revenues beating analyst predictions by 9.3% to hit €8.4b. Statutory earnings per share (EPS) came in at €5.40, some 5.2% above whatthe analysts had expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

After the latest results, the seven analysts covering VERBUND are now predicting revenues of €8.56b in 2025. If met, this would reflect a satisfactory 2.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 16% to €4.52 in the same period. Before this earnings report, the analysts had been forecasting revenues of €7.40b and earnings per share (EPS) of €4.60 in 2025. There's clearly been a surge in bullishness around the company's revenue pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for VERBUND

Even though revenue forecasts increased, there was no change to the consensus price target of €68.12, suggesting the analysts are focused on earnings as the driver of value creation. 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. The most optimistic VERBUND analyst has a price target of €87.20 per share, while the most pessimistic values it at €61.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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. We would highlight that VERBUND's revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2025 being well below the historical 22% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.7% per year. Even after the forecast slowdown in growth, it seems obvious that VERBUND is also expected to grow faster than 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. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at €68.12, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for VERBUND going out to 2027, and you can see them free on our platform here..

Even so, be aware that VERBUND is showing 1 warning sign in our investment analysis , 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.