Earnings Beat: RATIONAL Aktiengesellschaft Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

It's been a good week for RATIONAL Aktiengesellschaft (ETR:RAA) shareholders, because the company has just released its latest interim results, and the shares gained 9.3% to €867. Revenues were €581m, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at €12.00, an impressive 21% 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for RATIONAL

Taking into account the latest results, the current consensus from RATIONAL's 14 analysts is for revenues of €1.20b in 2024. This would reflect an okay 4.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to rise 4.0% to €20.73. In the lead-up to this report, the analysts had been modelling revenues of €1.20b and earnings per share (EPS) of €20.37 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of €754, suggesting that the company has met expectations in its recent result. 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. There are some variant perceptions on RATIONAL, with the most bullish analyst valuing it at €975 and the most bearish at €560 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 9.0% growth on an annualised basis. That is in line with its 10% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.5% per year. So it's pretty clear that RATIONAL is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €754, 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 RATIONAL. 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 RATIONAL going out to 2026, and you can see them free on our platform here..

You can also see our analysis of RATIONAL's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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.