Implenia AG Just Beat Revenue By 5.0%: Here's What Analysts Think Will Happen Next

Shareholders of Implenia AG (VTX:IMPN) will be pleased this week, given that the stock price is up 12% to CHF65.00 following its latest half-year results. It was a workmanlike result, with revenues of CHF1.9b coming in 5.0% ahead of expectations, and statutory earnings per share of CHF5.00, in line with analyst appraisals. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Following last week's earnings report, Implenia's five analysts are forecasting 2025 revenues to be CHF3.61b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 5.0% to CHF5.11 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF3.59b and earnings per share (EPS) of CHF5.06 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.

View our latest analysis for Implenia

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 11% to CHF61.50. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Implenia analyst has a price target of CHF70.00 per share, while the most pessimistic values it at CHF48.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Implenia's past performance and to peers in the same industry. Over the past five years, revenues have declined around 2.8% annually. Worse, forecasts are essentially predicting the decline to accelerate, with the estimate for an annualised 3.6% decline in revenue until the end of 2025. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.9% per year. So it's pretty clear that, while it does have declining revenues, the analysts also expect Implenia to suffer worse than the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Implenia's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Implenia analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Implenia that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.