Getinge AB (publ) Just Recorded A 21% EPS Beat: Here's What Analysts Are Forecasting Next

Getinge AB (publ) (STO:GETI B) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of kr8.3b, some 4.6% above estimates, and statutory earnings per share (EPS) coming in at kr1.88, 21% ahead of expectations. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Getinge

Following the latest results, Getinge's nine analysts are now forecasting revenues of kr34.0b in 2024. This would be a credible 2.1% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be kr9.50, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of kr33.9b and earnings per share (EPS) of kr9.62 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of kr229, showing that the business is executing well and in line with expectations. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Getinge analyst has a price target of kr300 per share, while the most pessimistic values it at kr190. 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. We can infer from the latest estimates that forecasts expect a continuation of Getinge'shistorical trends, as the 4.2% annualised revenue growth to the end of 2024 is roughly in line with the 3.5% annual growth 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 revenues grow 16% per year. So it's pretty clear that Getinge is expected to grow slower than similar companies in the same 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. 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 kr229, 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 Getinge going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Getinge 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.

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