Earnings Miss: thyssenkrupp nucera AG & Co. KGaA Missed EPS By 15% And Analysts Are Revising Their Forecasts

Shareholders of thyssenkrupp nucera AG & Co. KGaA (ETR:NCH2) will be pleased this week, given that the stock price is up 13% to €9.78 following its latest quarterly results. It was not a great result overall. While revenues of €236m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 15% to hit €0.05 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for thyssenkrupp nucera KGaA

Taking into account the latest results, the current consensus from thyssenkrupp nucera KGaA's eleven analysts is for revenues of €950.1m in 2025. This would reflect a major 23% increase on its revenue over the past 12 months. Statutory earnings per share are expected to sink 14% to €0.039 in the same period. Before this earnings report, the analysts had been forecasting revenues of €990.5m and earnings per share (EPS) of €0.067 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

It'll come as no surprise then, to learn that the analysts have cut their price target 9.6% to €15.62. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on thyssenkrupp nucera KGaA, with the most bullish analyst valuing it at €25.50 and the most bearish at €8.50 per share. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

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 thyssenkrupp nucera KGaA's revenue growth is expected to slow, with the forecast 18% annualised growth rate until the end of 2025 being well below the historical 32% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.8% per year. So it's pretty clear that, while thyssenkrupp nucera KGaA's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for thyssenkrupp nucera KGaA. They also downgraded thyssenkrupp nucera KGaA's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of thyssenkrupp nucera KGaA's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for thyssenkrupp nucera KGaA going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for thyssenkrupp nucera KGaA 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.