Konecranes Plc Just Missed Earnings And Its Revenue Numbers Were Weaker Than Expected

Last week saw the newest first-quarter earnings release from Konecranes Plc (HEL:KCR), an important milestone in the company's journey to build a stronger business. Results look mixed - while revenue fell marginally short of analyst estimates at €913m, statutory earnings were in line with expectations, at €0.75 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Konecranes

Following last week's earnings report, Konecranes' six analysts are forecasting 2024 revenues to be €4.05b, approximately in line with the last 12 months. Statutory earnings per share are predicted to increase 3.7% to €3.69. Yet prior to the latest earnings, the analysts had been anticipated revenues of €4.05b and earnings per share (EPS) of €3.76 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €55.17. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Konecranes at €60.00 per share, while the most bearish prices it at €51.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Konecranes is an easy business to forecast or the the analysts are all using similar assumptions.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that Konecranes' revenue growth is expected to slow, with the forecast 2.2% annualised growth rate until the end of 2024 being well below the historical 3.6% 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 3.6% per year. Factoring in the forecast slowdown in growth, it seems obvious that Konecranes is also expected to grow slower than other industry participants.

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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €55.17, 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 Konecranes. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Konecranes going out to 2026, and you can see them free on our platform here..

It might also be worth considering whether Konecranes' debt load is appropriate, using our debt analysis tools on the Simply Wall St 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.