Here's What Analysts Are Forecasting For Kering SA (EPA:KER) After Its Full-Year Results

It's been a good week for Kering SA (EPA:KER) shareholders, because the company has just released its latest annual results, and the shares gained 9.7% to €413. It looks like the results were a bit of a negative overall. While revenues of €20b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 4.4% to hit €24.37 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Kering

Taking into account the latest results, the consensus forecast from Kering's 23 analysts is for revenues of €20.2b in 2024. This reflects a reasonable 3.0% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be €24.73, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of €20.4b and earnings per share (EPS) of €25.75 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

The consensus price target held steady at €464, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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. There are some variant perceptions on Kering, with the most bullish analyst valuing it at €610 and the most bearish at €380 per share. 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 Kering shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Kering's revenue growth is expected to slow, with the forecast 3.0% annualised growth rate until the end of 2024 being well below the historical 9.1% 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 7.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Kering.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Kering. 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 €464, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Kering going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Kering 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.