KPS AG Just Recorded A 7.8% EPS Beat: Here's What Analysts Are Forecasting Next

The yearly results for KPS AG (ETR:KSC) were released last week, making it a good time to revisit its performance. KPS reported €159m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.23 beat expectations, being 7.8% higher than what the analysts expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for KPS

Following the latest results, KPS' three analysts are now forecasting revenues of €171.2m in 2022. This would be an okay 7.7% improvement in sales compared to the last 12 months. Statutory per-share earnings are expected to be €0.23, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €170.2m and earnings per share (EPS) of €0.27 in 2022. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a real cut to EPS estimates.

The consensus price target held steady at €6.40, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on KPS, with the most bullish analyst valuing it at €8.40 and the most bearish at €5.30 per share. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that KPS' rate of growth is expected to accelerate meaningfully, with the forecast 7.7% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 0.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% annually. So it's clear that despite the acceleration in growth, KPS is expected to grow meaningfully slower than the industry average.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that KPS' revenues are expected to perform worse than the wider industry. The consensus price target held steady at €6.40, 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 KPS going out to 2024, and you can see them free on our platform here..

You should always think about risks though. Case in point, we've spotted 1 warning sign for KPS you should be aware of.

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.