Earnings Beat: Konecranes Plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Konecranes Plc (HEL:KCR) investors will be delighted, with the company turning in some strong numbers with its latest results. Konecranes beat earnings, with revenues hitting €1.1b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 17%. 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.

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Taking into account the latest results, the six analysts covering Konecranes provided consensus estimates of €4.20b revenue in 2025, which would reflect a noticeable 2.8% decline over the past 12 months. Statutory earnings per share are forecast to decrease 2.1% to €4.74 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.21b and earnings per share (EPS) of €4.67 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.

See our latest analysis for Konecranes

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €73.33. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Konecranes analyst has a price target of €93.00 per share, while the most pessimistic values it at €60.00. 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 Konecranes 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. We would highlight that revenue is expected to reverse, with a forecast 5.5% annualised decline to the end of 2025. That is a notable change from historical growth of 7.6% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Konecranes is expected to lag the wider 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, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Konecranes' revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that in mind, we wouldn't be too quick to come to a conclusion on Konecranes. Long-term earnings power is much more important than next year's profits. We have forecasts for Konecranes going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Konecranes' balance sheet, and whether we think Konecranes is carrying too much debt, for free on our platform here.

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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.