HOCHTIEF Aktiengesellschaft Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

HOCHTIEF Aktiengesellschaft (ETR:HOT) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 14% higher than the analysts had forecast, at €8.9b, while EPS were €4.09 beating analyst models by 115%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on HOCHTIEF after the latest results.

We've discovered 3 warning signs about HOCHTIEF. View them for free.

Following last week's earnings report, HOCHTIEF's eight analysts are forecasting 2025 revenues to be €34.9b, approximately in line with the last 12 months. Statutory earnings per share are expected to plummet 23% to €9.68 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €35.1b and earnings per share (EPS) of €9.42 in 2025. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

See our latest analysis for HOCHTIEF

The consensus price target was unchanged at €156, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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. Currently, the most bullish analyst values HOCHTIEF at €178 per share, while the most bearish prices it at €137. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.9% by the end of 2025. This indicates a significant reduction from annual growth of 7.6% 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 4.1% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - HOCHTIEF is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards HOCHTIEF following these results. 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 HOCHTIEF. Long-term earnings power is much more important than next year's profits. We have forecasts for HOCHTIEF going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - HOCHTIEF has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

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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.