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

Knorr-Bremse AG (ETR:KBX) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of €2.0b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.5% to hit €0.87 per share. 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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Taking into account the latest results, Knorr-Bremse's 13 analysts currently expect revenues in 2025 to be €7.98b, approximately in line with the last 12 months. Per-share earnings are expected to shoot up 46% to €3.82. Before this earnings report, the analysts had been forecasting revenues of €8.02b and earnings per share (EPS) of €3.90 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Knorr-Bremse

It might be a surprise to learn that the consensus price target was broadly unchanged at €86.93, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on Knorr-Bremse, with the most bullish analyst valuing it at €104 and the most bearish at €65.00 per share. 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.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Knorr-Bremse's revenue growth is expected to slow, with the forecast 0.7% annualised growth rate until the end of 2025 being well below the historical 6.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 5.9% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Knorr-Bremse.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Knorr-Bremse's revenue is expected to 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 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 Knorr-Bremse going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Knorr-Bremse that you should be aware of.

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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.