Results: Getinge AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates

Investors in Getinge AB (publ) (STO:GETI B) had a good week, as its shares rose 8.8% to close at kr232 following the release of its quarterly results. Revenues were kr7.5b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr1.69 were also better than expected, beating analyst predictions by 15%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Getinge after the latest results.

View our latest analysis for Getinge

Taking into account the latest results, the consensus forecast from Getinge's ten analysts is for revenues of kr34.1b in 2024. This reflects a credible 6.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 24% to kr10.36. Before this earnings report, the analysts had been forecasting revenues of kr34.0b and earnings per share (EPS) of kr9.72 in 2024. So the consensus seems to have become somewhat more optimistic on Getinge's earnings potential following these results.

The consensus price target was unchanged at kr235, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 Getinge analyst has a price target of kr300 per share, while the most pessimistic values it at kr186. 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 Getinge shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Getinge's past performance and to peers in the same industry. The analysts are definitely expecting Getinge's growth to accelerate, with the forecast 8.0% annualised growth to the end of 2024 ranking favourably alongside historical growth of 3.3% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 13% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, Getinge is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Getinge following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Getinge's revenue is expected to perform worse 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Getinge analysts - going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Getinge that 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.