UBS Group AG Just Recorded A 5.3% EPS Beat: Here's What Analysts Are Forecasting Next

UBS Group AG (VTX:UBSG) just released its latest quarterly results and things are looking bullish. The company beat expectations with revenues of US$12b arriving 3.8% ahead of forecasts. Statutory earnings per share (EPS) were US$0.73, 5.3% ahead of estimates. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, UBS Group's 13 analysts are forecasting 2025 revenues to be US$47.6b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$2.00, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$46.8b and earnings per share (EPS) of US$1.98 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.

See our latest analysis for UBS Group

The analysts reconfirmed their price target of CHF30.73, showing that the business is executing well and in line with expectations. 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. The most optimistic UBS Group analyst has a price target of CHF37.00 per share, while the most pessimistic values it at CHF21.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 1.7% annualised decline to the end of 2025. That is a notable change from historical growth of 9.3% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.9% per year. It's pretty clear that UBS Group's revenues are expected to perform substantially worse than the wider 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that UBS Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CHF30.73, 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 UBS Group analysts - going out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 2 warning signs we've spotted with UBS Group .

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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.