Konecranes Plc Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a pretty great week for Konecranes Plc (HEL:KCR) shareholders, with its shares surging 13% to €45.22 in the week since its latest yearly results. Konecranes reported €4.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €3.46 beat expectations, being 7.1% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Konecranes after the latest results.

See our latest analysis for Konecranes

Taking into account the latest results, the consensus forecast from Konecranes' six analysts is for revenues of €4.09b in 2024. This reflects a satisfactory 3.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 2.5% to €3.57. Before this earnings report, the analysts had been forecasting revenues of €4.03b and earnings per share (EPS) of €3.44 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 7.2% to €49.83, suggesting that higher earnings estimates flow through to the stock's valuation as well. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Konecranes analyst has a price target of €57.00 per share, while the most pessimistic values it at €40.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Konecranes'historical trends, as the 3.0% annualised revenue growth to the end of 2024 is roughly in line with the 2.9% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 2.5% annually. It's clear that while Konecranes' revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Konecranes following these results. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Konecranes 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 Konecranes 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.