Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München Beat Revenue Forecasts By 10%: Here's What Analysts Are Forecasting Next

Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München (ETR:MUV2) came out with its interim results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of €17b beat forecasts by 10%, although statutory earnings per share disappointed slightly, coming in 4.6% below expectations at €8.45. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for Münchener Rückversicherungs-Gesellschaft in München

Following the recent earnings report, the consensus from eleven analysts covering Münchener Rückversicherungs-Gesellschaft in München is for revenues of €66.1b in 2023. This implies a discernible 4.9% decline in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 57% to €32.30. Before this earnings report, the analysts had been forecasting revenues of €66.1b and earnings per share (EPS) of €31.94 in 2023. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €367. 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 Münchener Rückversicherungs-Gesellschaft in München, with the most bullish analyst valuing it at €408 and the most bearish at €315 per share. This is a very narrow spread of estimates, implying either that Münchener Rückversicherungs-Gesellschaft in München is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. We would highlight that revenue is expected to reverse, with a forecast 9.6% annualised decline to the end of 2023. That is a notable change from historical growth of 5.2% 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 3.1% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Münchener Rückversicherungs-Gesellschaft in München is expected to lag 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 Münchener Rückversicherungs-Gesellschaft in München's revenue 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Münchener Rückversicherungs-Gesellschaft in München. Long-term earnings power is much more important than next year's profits. We have forecasts for Münchener Rückversicherungs-Gesellschaft in München going out to 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 3 warning signs for Münchener Rückversicherungs-Gesellschaft in München you should be aware of, and 1 of them is significant.

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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.