RENK Group AG Just Missed Earnings - But Analysts Have Updated Their Models

Shareholders of RENK Group AG (FRA:R3NK) will be pleased this week, given that the stock price is up 11% to €46.05 following its latest annual results. It looks like the results were a bit of a negative overall. While revenues of €1.1b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 7.7% to hit €0.53 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. 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 consensus forecast from RENK Group's ten analysts is for revenues of €1.33b in 2025. This reflects a solid 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 78% to €0.95. Before this earnings report, the analysts had been forecasting revenues of €1.31b and earnings per share (EPS) of €1.09 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

See our latest analysis for RENK Group

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 9.7% to €45.14, suggesting the revised estimates are not indicative of a weaker long-term future for the business. 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. Currently, the most bullish analyst values RENK Group at €56.00 per share, while the most bearish prices it at €34.60. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

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 can infer from the latest estimates that forecasts expect a continuation of RENK Group'shistorical trends, as the 17% annualised revenue growth to the end of 2025 is roughly in line with the 14% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.0% annually. So it's pretty clear that RENK Group is forecast to grow substantially faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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

Before you take the next step you should know about the 1 warning sign for RENK Group that we have uncovered.

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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.