R&S Group Holding AG Just Beat EPS By 5.7%: Here's What Analysts Think Will Happen Next

Investors in R&S Group Holding AG (VTX:RSGN) had a good week, as its shares rose 9.9% to close at CHF19.36 following the release of its full-year results. The result was positive overall - although revenues of CHF283m were in line with what the analysts predicted, R&S Group Holding surprised by delivering a statutory profit of CHF1.30 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on R&S Group Holding after the latest results.

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Taking into account the latest results, the most recent consensus for R&S Group Holding from dual analysts is for revenues of CHF428.2m in 2025. If met, it would imply a substantial 52% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 50% to CHF1.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF429.8m and earnings per share (EPS) of CHF1.66 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for R&S Group Holding

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 16% to CHF24.90. It looks as though they previously had some doubts over whether the business would live up to their expectations.

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 R&S Group Holding's growth to accelerate, with the forecast 52% annualised growth to the end of 2025 ranking favourably alongside historical growth of 25% per annum over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that R&S Group Holding is expected to grow much faster than its 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, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 analyst estimates for R&S Group Holding going out as far as 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with R&S Group Holding (at least 2 which can't be ignored) , and understanding these should be part of your investment process.

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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.