Here's What Analysts Are Forecasting For Kontron AG (ETR:SANT) After Its Third-Quarter Results

Shareholders of Kontron AG (ETR:SANT) will be pleased this week, given that the stock price is up 15% to €17.80 following its latest third-quarter results. It was a credible result overall, with revenues of €428m and statutory earnings per share of €0.61 both in line with analyst estimates, showing that Kontron is executing in line with expectations. 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.

Check out our latest analysis for Kontron

Following the latest results, Kontron's five analysts are now forecasting revenues of €1.92b in 2025. This would be a notable 17% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 41% to €1.94. Before this earnings report, the analysts had been forecasting revenues of €1.99b and earnings per share (EPS) of €1.94 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

The average price target was steady at €30.64even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings. 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 Kontron, with the most bullish analyst valuing it at €37.00 and the most bearish at €26.46 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 Kontron shareholders.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Kontron's rate of growth is expected to accelerate meaningfully, with the forecast 13% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Kontron to grow faster 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. They also downgraded Kontron's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Yet - earnings are more important to the intrinsic value of the business. The consensus price target held steady at €30.64, 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 Kontron. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kontron analysts - going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for Kontron that you need to take into consideration.

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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.