Schindler Holding AG Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Investors in Schindler Holding AG (VTX:SCHN) had a good week, as its shares rose 4.8% to close at CHF252 following the release of its quarterly results. It looks like a credible result overall - although revenues of CHF2.8b were in line with what the analysts predicted, Schindler Holding surprised by delivering a statutory profit of CHF2.16 per share, a notable 10% above expectations. 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.

See our latest analysis for Schindler Holding

After the latest results, the 17 analysts covering Schindler Holding are now predicting revenues of CHF11.6b in 2025. If met, this would reflect a satisfactory 2.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 11% to CHF9.50. Before this earnings report, the analysts had been forecasting revenues of CHF11.7b and earnings per share (EPS) of CHF9.45 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.

The consensus price target rose 5.7% to CHF256despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Schindler Holding's earnings by assigning a price premium. 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. Currently, the most bullish analyst values Schindler Holding at CHF285 per share, while the most bearish prices it at CHF208. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Schindler Holding's growth to accelerate, with the forecast 1.9% annualised growth to the end of 2025 ranking favourably alongside historical growth of 1.1% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.0% annually. So it's clear that despite the acceleration in growth, Schindler Holding 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Schindler Holding's revenue is expected to perform worse 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.

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 forecasts for Schindler Holding going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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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.