Vossloh AG (ETR:VOS) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It was not a great result overall. Although revenues beat expectations, hitting €950m, statutory earnings missed analyst forecasts by 19%, coming in at just €1.31 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the most recent consensus for Vossloh from five analysts is for revenues of €972.1m in 2022 which, if met, would be a modest 2.3% increase on its sales over the past 12 months. Per-share earnings are expected to jump 28% to €2.39. In the lead-up to this report, the analysts had been modelling revenues of €968.6m and earnings per share (EPS) of €2.32 in 2022. So the consensus seems to have become somewhat more optimistic on Vossloh's earnings potential following these results.
There's been no major changes to the consensus price target of €55.58, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Vossloh analyst has a price target of €60.00 per share, while the most pessimistic values it at €53.00. This is a very narrow spread of estimates, implying either that Vossloh is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. It's clear from the latest estimates that Vossloh's rate of growth is expected to accelerate meaningfully, with the forecast 2.3% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 0.9% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.2% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Vossloh is expected to grow slower than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vossloh's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Vossloh's revenues are expected to perform worse than the wider industry. The consensus price target held steady at €55.58, with the latest estimates not enough to have an impact on their price targets.
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 Vossloh going out to 2024, and you can see them free on our platform here..
It is also worth noting that we have found 1 warning sign for Vossloh 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.