GEA Group Aktiengesellschaft Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

GEA Group Aktiengesellschaft (ETR:G1A) shareholders are probably feeling a little disappointed, since its shares fell 4.5% to €36.24 in the week after its latest third-quarter results. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at €1.4b, statutory earnings beat expectations by a notable 10%, coming in at €0.70 per share. 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 GEA Group

Taking into account the latest results, the current consensus from GEA Group's 14 analysts is for revenues of €5.69b in 2024. This would reflect a reasonable 6.0% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 4.4% to €2.49. In the lead-up to this report, the analysts had been modelling revenues of €5.56b and earnings per share (EPS) of €2.39 in 2024. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of €41.23, suggesting that the forecast performance does not have a long term impact on the company's valuation. 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 €47.00 per share, while the most pessimistic values it at €32.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting GEA Group's growth to accelerate, with the forecast 4.7% annualised growth to the end of 2024 ranking favourably alongside historical growth of 2.1% per annum 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 3.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that GEA Group is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GEA Group's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for GEA Group going out to 2026, and you can see them free on our platform here..

We also provide an overview of the GEA Group 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.