Analyst Estimates: Here's What Brokers Think Of Geberit AG (VTX:GEBN) After Its Third-Quarter Report

It's been a good week for Geberit AG (VTX:GEBN) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.5% to CHF535. It was a workmanlike result, with revenues of CHF762m coming in 4.8% ahead of expectations, and statutory earnings per share of CHF4.54, in line with analyst appraisals. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Geberit

Following the latest results, Geberit's 15 analysts are now forecasting revenues of CHF3.16b in 2025. This would be a modest 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 4.2% to CHF18.98. In the lead-up to this report, the analysts had been modelling revenues of CHF3.15b and earnings per share (EPS) of CHF18.84 in 2025. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CHF485. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Geberit at CHF598 per share, while the most bearish prices it at CHF355. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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. The analysts are definitely expecting Geberit's growth to accelerate, with the forecast 1.7% annualised growth to the end of 2025 ranking favourably alongside historical growth of 0.5% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.0% per year. So it's clear that despite the acceleration in growth, Geberit is expected to grow meaningfully slower than the industry average.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CHF485, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Geberit analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Geberit that you should be aware 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.