Carl Zeiss Meditec AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Carl Zeiss Meditec AG (ETR:AFX) shareholders are probably feeling a little disappointed, since its shares fell 7.0% to €43.04 in the week after its latest third-quarter results. Statutory earnings per share fell badly short of expectations, coming in at €0.32, some 28% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €550m. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the current consensus from Carl Zeiss Meditec's 15 analysts is for revenues of €2.32b in 2026. This would reflect a satisfactory 6.5% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to surge 29% to €2.22. Before this earnings report, the analysts had been forecasting revenues of €2.34b and earnings per share (EPS) of €2.29 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

Check out our latest analysis for Carl Zeiss Meditec

It might be a surprise to learn that the consensus price target fell 9.1% to €57.01, with the analysts clearly linking lower forecast earnings to the performance of the stock price. 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 Carl Zeiss Meditec, with the most bullish analyst valuing it at €72.00 and the most bearish at €35.10 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Carl Zeiss Meditec's past performance and to peers in the same industry. We would highlight that Carl Zeiss Meditec's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2026 being well below the historical 9.7% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.5% annually. Factoring in the forecast slowdown in growth, it looks like Carl Zeiss Meditec is forecast to grow at about the same rate as the wider 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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Carl Zeiss Meditec's future valuation.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Carl Zeiss Meditec 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 Carl Zeiss Meditec 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.