Rieter Holding AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Last week, you might have seen that Rieter Holding AG (VTX:RIEN) released its full-year result to the market. The early response was not positive, with shares down 6.3% to CHF82.20 in the past week. It looks like a pretty bad result, all things considered. Although revenues of CHF859m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 34% to hit CHF2.33 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Rieter Holding

Taking into account the latest results, the current consensus from Rieter Holding's four analysts is for revenues of CHF1.02b in 2025. This would reflect a notable 18% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 113% to CHF4.97. In the lead-up to this report, the analysts had been modelling revenues of CHF1.12b and earnings per share (EPS) of CHF8.84 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.

Despite the cuts to forecast earnings, there was no real change to the CHF125 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic 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. Currently, the most bullish analyst values Rieter Holding at CHF135 per share, while the most bearish prices it at CHF111. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Rieter Holding is an easy business to forecast or the the analysts are all using similar assumptions.

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. It's clear from the latest estimates that Rieter Holding's rate of growth is expected to accelerate meaningfully, with the forecast 18% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 14% p.a. 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 5.3% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Rieter Holding to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Rieter Holding's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Rieter Holding. Long-term earnings power is much more important than next year's profits. We have forecasts for Rieter Holding 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 3 warning signs for Rieter Holding (1 can't be ignored!) that we have uncovered.

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.