Earnings Update: GEA Group Aktiengesellschaft (ETR:G1A) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

The quarterly results for GEA Group Aktiengesellschaft (ETR:G1A) were released last week, making it a good time to revisit its performance. It was a credible result overall, with revenues of €1.3b and statutory earnings per share of €0.67 both in line with analyst estimates, showing that GEA Group is executing in line with expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for GEA Group

Following the latest results, GEA Group's 13 analysts are now forecasting revenues of €5.55b in 2025. This would be a reasonable 4.3% improvement in revenue compared to the last 12 months. Per-share earnings are expected to ascend 17% to €2.87. Before this earnings report, the analysts had been forecasting revenues of €5.56b and earnings per share (EPS) of €2.82 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.

The analysts reconfirmed their price target of €49.75, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic GEA Group analyst has a price target of €54.00 per share, while the most pessimistic values it at €39.00. 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. We can infer from the latest estimates that forecasts expect a continuation of GEA Group'shistorical trends, as the 3.4% annualised revenue growth to the end of 2025 is roughly in line with the 2.9% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 4.5% annually. So it's pretty clear that GEA Group is expected to grow slower than similar companies in the same 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on GEA Group. Long-term earnings power is much more important than next year's profits. We have forecasts for GEA Group going out to 2026, and you can see them free on our platform here.

You can also see our analysis of GEA Group's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.