Analyst Estimates: Here's What Brokers Think Of Kaufman & Broad S.A. (EPA:KOF) After Its Second-Quarter Report

Last week, you might have seen that Kaufman & Broad S.A. (EPA:KOF) released its quarterly result to the market. The early response was not positive, with shares down 4.0% to €31.40 in the past week. It was a credible result overall, with revenues of €249m and statutory earnings per share of €2.26 both in line with analyst estimates, showing that Kaufman & Broad is executing in line with expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Following last week's earnings report, Kaufman & Broad's seven analysts are forecasting 2025 revenues to be €1.14b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.15b and earnings per share (EPS) of €2.60 in 2025. Overall, while the analysts have reconfirmed their revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important after these latest results.

View our latest analysis for Kaufman & Broad

There's been no real change to the consensus price target of €37.93, with Kaufman & Broad seemingly executing 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. The most optimistic Kaufman & Broad analyst has a price target of €41.70 per share, while the most pessimistic values it at €32.50. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. One thing stands out from these estimates, which is that Kaufman & Broad is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.0% annualised growth until the end of 2025. If achieved, this would be a much better result than the 1.3% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 4.1% per year. So although Kaufman & Broad's revenue growth is expected to improve, it is still expected to grow slower than the industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. 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 €37.93, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Kaufman & Broad from its seven analysts out to 2027, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Kaufman & Broad .

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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.