Here's What Analysts Are Forecasting For Construcciones y Auxiliar de Ferrocarriles, S.A. (BME:CAF) After Its Yearly Results

Investors in Construcciones y Auxiliar de Ferrocarriles, S.A. (BME:CAF) had a good week, as its shares rose 5.5% to close at €38.15 following the release of its annual results. Construcciones y Auxiliar de Ferrocarriles reported in line with analyst predictions, delivering revenues of €4.2b and statutory earnings per share of €3.02, suggesting the business is executing well and in line with its plan. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Construcciones y Auxiliar de Ferrocarriles

Taking into account the latest results, the most recent consensus for Construcciones y Auxiliar de Ferrocarriles from seven analysts is for revenues of €4.55b in 2025. If met, it would imply a reasonable 7.9% increase on its revenue over the past 12 months. Per-share earnings are expected to step up 20% to €3.61. Before this earnings report, the analysts had been forecasting revenues of €4.49b and earnings per share (EPS) of €4.14 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.

The consensus price target held steady at €46.86, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. The most optimistic Construcciones y Auxiliar de Ferrocarriles analyst has a price target of €53.50 per share, while the most pessimistic values it at €40.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. We would highlight that Construcciones y Auxiliar de Ferrocarriles' revenue growth is expected to slow, with the forecast 7.9% annualised growth rate until the end of 2025 being well below the historical 11% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.0% annually. So it's pretty clear that, while Construcciones y Auxiliar de Ferrocarriles' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Construcciones y Auxiliar de Ferrocarriles. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €46.86, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Construcciones y Auxiliar de Ferrocarriles going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 1 warning sign for Construcciones y Auxiliar de Ferrocarriles that you need to be mindful of.

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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.