thyssenkrupp nucera AG & Co. KGaA Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Shareholders of thyssenkrupp nucera AG & Co. KGaA (ETR:NCH2) will be pleased this week, given that the stock price is up 13% to €10.60 following its latest full-year results. It looks like a credible result overall - although revenues of €862m were what the analysts expected, thyssenkrupp nucera KGaA surprised by delivering a statutory profit of €0.09 per share, instead of the previously forecast loss. 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.

See our latest analysis for thyssenkrupp nucera KGaA

Following the latest results, thyssenkrupp nucera KGaA's eleven analysts are now forecasting revenues of €896.7m in 2025. This would be a credible 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to crater 48% to €0.045 in the same period. Before this earnings report, the analysts had been forecasting revenues of €937.8m and earnings per share (EPS) of €0.055 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.

The analysts made no major changes to their price target of €14.91, suggesting the downgrades are not expected to have a long-term impact on thyssenkrupp nucera KGaA's valuation. 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. 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. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. 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.

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. We would highlight that thyssenkrupp nucera KGaA's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2025 being well below the historical 32% p.a. growth over the last three years. Compare this to the 10 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.7% per year. So it's pretty clear that, while thyssenkrupp nucera KGaA's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. The consensus price target held steady at €14.91, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on thyssenkrupp nucera KGaA. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple thyssenkrupp nucera KGaA analysts - going out to 2027, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for thyssenkrupp nucera KGaA that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.