Shareholders of thyssenkrupp nucera AG & Co. KGaA (ETR:NCH2) will be pleased this week, given that the stock price is up 13% to €10.60 following its latest full-year results. It looks like a credible result overall – although revenues of €862m were what the analysts expected, thyssenkrupp nucera KGaA surprised by delivering a statutory profit of €0.09 per share, instead of the previously forecast loss. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for thyssenkrupp nucera KGaA
Taking into account the latest results, the current consensus from thyssenkrupp nucera KGaA’s eleven analysts is for revenues of €896.7m in 2025. This would reflect a reasonable 4.0% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to plunge 48% to €0.045 in the same period. Before this earnings report, the analysts had been forecasting revenues of €937.8m and earnings per share (EPS) of €0.055 in 2025. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a substantial drop in earnings per share estimates.
The analysts made no major changes to their price target of €14.91, suggesting the downgrades are not expected to have a long-term impact on thyssenkrupp nucera KGaA’s valuation. 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. Currently, the most bullish analyst values thyssenkrupp nucera KGaA at €25.50 per share, while the most bearish prices it at €8.50. So we wouldn’t be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn’t rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
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. It’s pretty clear that there is an expectation that thyssenkrupp nucera KGaA’s revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 4.0% growth on an annualised basis. This is compared to a historical growth rate of 32% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.7% annually. So it’s pretty clear that, while thyssenkrupp nucera KGaA’s revenue growth is expected to slow, it’s expected to grow roughly in line with the industry.