Need To Know: Analysts Are Much More Bullish On Kontron AG (ETR:SANT) Revenues

Celebrations may be in order for Kontron AG (ETR:SANT) shareholders, with the analysts delivering a significant upgrade to their statutory estimates for the company. The analysts have sharply increased their revenue numbers, with a view that Kontron will make substantially more sales than they'd previously expected.

Following the upgrade, the current consensus from Kontron's seven analysts is for revenues of €1.7b in 2024 which - if met - would reflect a sizeable 35% increase on its sales over the past 12 months. Statutory earnings per share are presumed to climb 17% to €1.43. Before this latest update, the analysts had been forecasting revenues of €1.4b and earnings per share (EPS) of €1.42 in 2024. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

View our latest analysis for Kontron

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 Kontron's rate of growth is expected to accelerate meaningfully, with the forecast 35% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 1.3% 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 8.9% 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 analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. Given that analysts appear to be expecting substantial improvement in the sales pipeline, now could be the right time to take another look at Kontron.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Kontron analysts - going out to 2026, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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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.