Results: Bayerische Motoren Werke Aktiengesellschaft Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders might have noticed that Bayerische Motoren Werke Aktiengesellschaft (ETR:BMW) filed its half-year result this time last week. The early response was not positive, with shares down 6.3% to €82.06 in the past week. Bayerische Motoren Werke reported €74b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €4.15 beat expectations, being 5.8% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

See our latest analysis for Bayerische Motoren Werke

Following last week's earnings report, Bayerische Motoren Werke's 20 analysts are forecasting 2024 revenues to be €156.9b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be €16.44, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €157.5b and earnings per share (EPS) of €16.47 in 2024. 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.

The analysts reconfirmed their price target of €108, showing that the business is executing well and in line with expectations. 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. The most optimistic Bayerische Motoren Werke analyst has a price target of €166 per share, while the most pessimistic values it at €80.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. It's pretty clear that there is an expectation that Bayerische Motoren Werke's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.5% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 2.7% annually. So it's pretty clear that, while Bayerische Motoren Werke's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at €108, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Bayerische Motoren Werke analysts - 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 2 warning signs for Bayerische Motoren Werke (1 is a bit concerning!) that we have uncovered.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com