Yahoo Finance Earnings Miss: Koenig & Bauer AG Missed EPS By 76% And Analysts Are Revising Their Forecasts
The yearly results for Koenig & Bauer AG (ETR:SKB) were released last week, making it a good time to revisit its performance. Statutory earnings per share fell badly short of expectations, coming in at €0.16, some 76% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €1.3b. 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. 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 Koenig & Bauer
Taking into account the latest results, Koenig & Bauer's six analysts currently expect revenues in 2024 to be €1.32b, approximately in line with the last 12 months. Statutory earnings per share are predicted to soar 218% to €0.54. In the lead-up to this report, the analysts had been modelling revenues of €1.31b and earnings per share (EPS) of €0.64 in 2024. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a substantial drop in EPS estimates.
It might be a surprise to learn that the consensus price target was broadly unchanged at €15.33, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Koenig & Bauer analyst has a price target of €20.00 per share, while the most pessimistic values it at €12.00. 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 Koenig & Bauer shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Koenig & Bauer's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.8% annualised decline to the end of 2024. That is a notable change from historical growth of 0.04% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 3.6% annually for the foreseeable future. It's pretty clear that Koenig & Bauer's revenues are expected to perform substantially worse than the wider industry.
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. 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 €15.33, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Koenig & Bauer going out to 2026, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 2 warning signs for Koenig & Bauer you should be aware of, and 1 of them can't be ignored.
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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.
