Carl Zeiss Meditec AG Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Carl Zeiss Meditec AG (ETR:AFX) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to €94.55 in the week after its latest half-yearly results. Revenues €947m disappointed slightly, at6.2% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of €0.52 coming in 12% above what was anticipated. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Carl Zeiss Meditec after the latest results.

Check out our latest analysis for Carl Zeiss Meditec

Following the latest results, Carl Zeiss Meditec's 15 analysts are now forecasting revenues of €2.22b in 2024. This would be a credible 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to dip 2.2% to €2.86 in the same period. Before this earnings report, the analysts had been forecasting revenues of €2.27b and earnings per share (EPS) of €2.92 in 2024. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The analysts made no major changes to their price target of €108, suggesting the downgrades are not expected to have a long-term impact on Carl Zeiss Meditec's valuation. 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. There are some variant perceptions on Carl Zeiss Meditec, with the most bullish analyst valuing it at €150 and the most bearish at €68.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the 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. It's clear from the latest estimates that Carl Zeiss Meditec's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.0% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Carl Zeiss Meditec to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Carl Zeiss Meditec. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. The consensus price target held steady at €108, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Carl Zeiss Meditec. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Carl Zeiss Meditec analysts - going out to 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.