Here's What Analysts Are Forecasting For Knorr-Bremse AG (ETR:KBX) After Its Full-Year Results

As you might know, Knorr-Bremse AG (ETR:KBX) just kicked off its latest full-year results with some very strong numbers. The company beat expectations with revenues of €8.0b arriving 2.9% ahead of forecasts. Statutory earnings per share (EPS) were €3.43, 2.3% ahead of estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for Knorr-Bremse

Taking into account the latest results, the current consensus, from the 15 analysts covering Knorr-Bremse, is for revenues of €7.87b in 2024. This implies a measurable 2.1% reduction in Knorr-Bremse's revenue over the past 12 months. Per-share earnings are expected to expand 10% to €3.77. Before this earnings report, the analysts had been forecasting revenues of €7.87b and earnings per share (EPS) of €3.72 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.

There were no changes to revenue or earnings estimates or the price target of €68.00, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Knorr-Bremse at €79.00 per share, while the most bearish prices it at €46.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Knorr-Bremse shareholders.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that revenue is expected to reverse, with a forecast 2.1% annualised decline to the end of 2024. That is a notable change from historical growth of 3.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.4% annually for the foreseeable future. It's pretty clear that Knorr-Bremse's revenues are expected to perform substantially worse than the wider 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 Knorr-Bremse. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Knorr-Bremse going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Knorr-Bremse 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.