Friedrich Vorwerk Group SE Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

A week ago, Friedrich Vorwerk Group SE (ETR:VH2) came out with a strong set of half-year numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 2.2% to hit €194m. Friedrich Vorwerk Group also reported a statutory profit of €0.40, which was an impressive 21% above what the analysts had forecast. 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.

See our latest analysis for Friedrich Vorwerk Group

Taking into account the latest results, Friedrich Vorwerk Group's four analysts currently expect revenues in 2024 to be €410.9m, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 7.1% to €0.89. Before this earnings report, the analysts had been forecasting revenues of €394.7m and earnings per share (EPS) of €0.86 in 2024. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

Despite these upgrades,the analysts have not made any major changes to their price target of €19.53, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Friedrich Vorwerk Group at €24.00 per share, while the most bearish prices it at €15.50. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Friedrich Vorwerk Group shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Friedrich Vorwerk Group's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 36% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Friedrich Vorwerk Group.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Friedrich Vorwerk Group's earnings potential next year. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to 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. At Simply Wall St, we have a full range of analyst estimates for Friedrich Vorwerk Group going out to 2026, and you can see them free on our platform here..

You can also see whether Friedrich Vorwerk Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.