Kinepolis Group NV (EBR:KIN) Just Released Its Annual Earnings: Here's What Analysts Think

Investors in Kinepolis Group NV (EBR:KIN) had a good week, as its shares rose 4.8% to close at €43.50 following the release of its yearly results. The result was positive overall - although revenues of €605m were in line with what the analysts predicted, Kinepolis Group surprised by delivering a statutory profit of €2.03 per share, modestly greater than 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.

Check out our latest analysis for Kinepolis Group

Taking into account the latest results, the current consensus from Kinepolis Group's four analysts is for revenues of €631.0m in 2024. This would reflect a reasonable 4.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 28% to €2.68. Yet prior to the latest earnings, the analysts had been anticipated revenues of €656.1m and earnings per share (EPS) of €2.69 in 2024. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The consensus has reconfirmed its price target of €56.40, showing that the analysts don't expect weaker revenue expectations next year to have a material impact on Kinepolis Group's market value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Kinepolis Group analyst has a price target of €60.00 per share, while the most pessimistic values it at €54.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kinepolis Group's past performance and to peers in the same industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 4.2% growth on an annualised basis. That is in line with its 3.7% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 5.9% annually. So it's pretty clear that Kinepolis Group is expected to grow slower than similar companies in the same industry.

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. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. Still, earnings are more important to the intrinsic value of the business. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Kinepolis Group going out to 2026, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Kinepolis Group that we have uncovered.

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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.