Results: Ernst Russ AG Beat Earnings Expectations And Analysts Now Have New Forecasts

Ernst Russ AG (ETR:HXCK) just released its latest quarterly results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.7% to hit €39m. Ernst Russ also reported a statutory profit of €0.58, which was an impressive 164% above what the analysts had forecast. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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After the latest results, the consensus from Ernst Russ' three analysts is for revenues of €152.2m in 2026, which would reflect a stressful 23% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to crater 39% to €1.15 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €152.5m and earnings per share (EPS) of €1.17 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

View our latest analysis for Ernst Russ

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €10.67. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Ernst Russ at €12.00 per share, while the most bearish prices it at €10.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 19% by the end of 2026. This indicates a significant reduction from annual growth of 20% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 2.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Ernst Russ is expected to lag the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Ernst Russ going out to 2027, and you can see them free on our platform here.

It is also worth noting that we have found 2 warning signs for Ernst Russ (1 is significant!) 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.