KONE Oyj (HEL:KNEBV) Just Released Its Annual Earnings: Here's What Analysts Think

Investors in KONE Oyj (HEL:KNEBV) had a good week, as its shares rose 4.0% to close at €50.00 following the release of its full-year results. It looks like the results were a bit of a negative overall. While revenues of €11b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 3.4% to hit €1.84 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.

Check out our latest analysis for KONE Oyj

Taking into account the latest results, the consensus forecast from KONE Oyj's 19 analysts is for revenues of €11.6b in 2025. This reflects an okay 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 15% to €2.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of €11.5b and earnings per share (EPS) of €2.08 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.

The analysts reconfirmed their price target of €51.95, showing that the business is executing well and in line with expectations. 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. There are some variant perceptions on KONE Oyj, with the most bullish analyst valuing it at €65.00 and the most bearish at €37.00 per share. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that KONE Oyj's rate of growth is expected to accelerate meaningfully, with the forecast 4.2% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 2.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 2.8% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that KONE Oyj is expected to grow much faster than its 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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 KONE Oyj. Long-term earnings power is much more important than next year's profits. We have forecasts for KONE Oyj going out to 2027, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with KONE Oyj , and understanding it should be part of your investment process.

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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.