On Holding AG Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

It's been a good week for On Holding AG (NYSE:ONON) shareholders, because the company has just released its latest full-year results, and the shares gained 6.1% to US$49.53. Revenues were CHF2.3b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at CHF0.74, an impressive 20% ahead of 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'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 On Holding

Taking into account the latest results, the current consensus from On Holding's 27 analysts is for revenues of CHF2.98b in 2025. This would reflect a sizeable 28% increase on its revenue over the past 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF2.96b and earnings per share (EPS) of CHF0.80 in 2025. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

We'd also point out that thatthe analysts have made no major changes to their price target of US$64.58. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values On Holding at US$73.55 per share, while the most bearish prices it at US$50.26. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that On Holding's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 28% growth on an annualised basis. This is compared to a historical growth rate of 37% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.4% annually. Even after the forecast slowdown in growth, it seems obvious that On Holding is also expected to grow faster than the wider 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. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$64.58, with the latest estimates not enough to have an impact on their price targets.

We have estimates for On Holding from its 27 analysts out to 2027, and you can see them free on our platform here.

We also provide an overview of the On Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.