Earnings Update: Hannover Rück SE (ETR:HNR1) Just Reported Its Second-Quarter Results And Analysts Are Updating Their Forecasts

Hannover Rück SE (ETR:HNR1) shareholders are probably feeling a little disappointed, since its shares fell 7.9% to €255 in the week after its latest quarterly results. Revenues came in 4.1% below expectations, at €6.4b. Statutory earnings per share were relatively better off, with a per-share profit of €6.91 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Hannover Rück after the latest results.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Taking into account the latest results, the eleven analysts covering Hannover Rück provided consensus estimates of €27.5b revenue in 2025, which would reflect a discernible 6.4% decline over the past 12 months. Per-share earnings are expected to increase 3.3% to €21.26. Before this earnings report, the analysts had been forecasting revenues of €27.7b and earnings per share (EPS) of €21.03 in 2025. 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 Hannover Rück

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €286. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Hannover Rück, with the most bullish analyst valuing it at €340 and the most bearish at €221 per share. 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 Hannover Rück shareholders.

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 12% by the end of 2025. This indicates a significant reduction from annual growth of 3.0% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.8% annually for the foreseeable future. It's pretty clear that Hannover Rück's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Hannover Rück's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €286, with the latest estimates not enough to have an impact on their price targets.

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 Hannover Rück going out to 2027, and you can see them free on our platform here..

You can also see our analysis of Hannover Rück's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.