Analysts Are Updating Their Getinge AB (publ) (STO:GETI B) Estimates After Its Full-Year Results

It's been a mediocre week for Getinge AB (publ) (STO:GETI B) shareholders, with the stock dropping 12% to kr198 in the week since its latest yearly results. Getinge beat revenue expectations by 3.0%, at kr32b. Statutory earnings per share (EPS) came in at kr8.86, some 2.5% short of analyst estimates. 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.

Check out our latest analysis for Getinge

After the latest results, the ten analysts covering Getinge are now predicting revenues of kr33.6b in 2024. If met, this would reflect a reasonable 5.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 13% to kr10.02. In the lead-up to this report, the analysts had been modelling revenues of kr32.9b and earnings per share (EPS) of kr10.31 in 2024. So it's pretty clear consensus is mixed on Getinge after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The consensus price target was unchanged at kr233, suggesting the business is performing roughly in line with expectations, despite some adjustments to profit and revenue forecasts. 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 Getinge, with the most bullish analyst valuing it at kr300 and the most bearish at kr200 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Getinge's growth to accelerate, with the forecast 5.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.4% per annum 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 15% per year. So it's clear that despite the acceleration in growth, Getinge is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower 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 Getinge. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Getinge analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - Getinge has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.