Earnings Beat: JOST Werke SE Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for JOST Werke SE (ETR:JST) shareholders, because the company has just released its latest full-year results, and the shares gained 5.9% to €54.00. Revenues were €1.1b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of €3.53 were also better than expected, beating analyst predictions by 16%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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After the latest results, the five analysts covering JOST Werke are now predicting revenues of €1.67b in 2025. If met, this would reflect a major 57% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 21% to €4.27. Before this earnings report, the analysts had been forecasting revenues of €1.53b and earnings per share (EPS) of €3.67 in 2025. So it seems there's been a definite increase in optimism about JOST Werke's future following the latest results, with a solid gain to the earnings per share forecasts in particular.

View our latest analysis for JOST Werke

Despite these upgrades,the analysts have not made any major changes to their price target of €65.80, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values JOST Werke at €76.00 per share, while the most bearish prices it at €55.00. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting JOST Werke's growth to accelerate, with the forecast 57% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% 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 5.0% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect JOST Werke to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around JOST Werke's earnings potential next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected 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.

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 JOST Werke analysts - going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for JOST Werke that you need to take into consideration.

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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.