Vestas Wind Systems A/S (CPH:VWS) Just Released Its First-Quarter Earnings: Here's What Analysts Think

Investors in Vestas Wind Systems A/S (CPH:VWS) had a good week, as its shares rose 6.8% to close at kr.93.00 following the release of its quarterly results. Revenues of €3.5b beat analyst forecasts by12%, while the business broke even in terms of statutory earnings per share (EPS). Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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After the latest results, the 25 analysts covering Vestas Wind Systems are now predicting revenues of €19.2b in 2025. If met, this would reflect a modest 6.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 30% to €0.74. Before this earnings report, the analysts had been forecasting revenues of €19.1b and earnings per share (EPS) of €0.76 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 Vestas Wind Systems

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.141. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Vestas Wind Systems analyst has a price target of kr.220 per share, while the most pessimistic values it at kr.59.98. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

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. The analysts are definitely expecting Vestas Wind Systems' growth to accelerate, with the forecast 8.3% annualised growth to the end of 2025 ranking favourably alongside historical growth of 3.2% per annum 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 6.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Vestas Wind Systems is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr.141, 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 Vestas Wind Systems. Long-term earnings power is much more important than next year's profits. We have forecasts for Vestas Wind Systems going out to 2027, and you can see them free on our platform here.

You can also see our analysis of Vestas Wind Systems' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.