Schindler Holding AG Just Beat EPS By 8.7%: Here's What Analysts Think Will Happen Next

Schindler Holding AG (VTX:SCHN) came out with its second-quarter results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Schindler Holding missed revenue estimates by 2.0%, coming in atCHF2.8b, although statutory earnings per share (EPS) of CHF2.42 beat expectations, coming in 8.7% ahead of analyst estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following last week's earnings report, Schindler Holding's 16 analysts are forecasting 2025 revenues to be CHF11.2b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CHF9.28, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of CHF11.2b and earnings per share (EPS) of CHF9.38 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.

Check out our latest analysis for Schindler Holding

It will come as no surprise then, to learn that the consensus price target is largely unchanged at CHF294. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Schindler Holding, with the most bullish analyst valuing it at CHF333 and the most bearish at CHF233 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Schindler Holding's rate of growth is expected to accelerate meaningfully, with the forecast 1.5% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 1.0% 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 5.2% per year. 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 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 Schindler Holding's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CHF294, 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 Schindler Holding analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the Schindler Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, 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.