Earnings Miss: KONE Oyj Missed EPS By 5.6% And Analysts Are Revising Their Forecasts

Shareholders might have noticed that KONE Oyj (HEL:KNEBV) filed its third-quarter result this time last week. The early response was not positive, with shares down 3.3% to €51.22 in the past week. It looks like the results were a bit of a negative overall. While revenues of €2.8b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.6% to hit €0.48 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for KONE Oyj

Taking into account the latest results, the most recent consensus for KONE Oyj from 20 analysts is for revenues of €11.5b in 2025. If met, it would imply an okay 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 11% to €2.11. Before this earnings report, the analysts had been forecasting revenues of €11.5b and earnings per share (EPS) of €2.15 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.

There were no changes to revenue or earnings estimates or the price target of €51.68, suggesting that the company has met expectations in its recent result. 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 KONE Oyj analyst has a price target of €61.00 per share, while the most pessimistic values it at €33.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that KONE Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 4.1% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 4.0% annually. KONE Oyj is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple KONE Oyj analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for KONE Oyj that you should be aware 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.