Yahoo Finance EDAG Engineering Group AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
EDAG Engineering Group AG (ETR:ED4) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a pretty mixed result, with revenues beating expectations to hit €874m. Statutory earnings fell 5.5% short of analyst forecasts, reaching €1.16 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
See our latest analysis for EDAG Engineering Group
Taking into account the latest results, the current consensus from EDAG Engineering Group's three analysts is for revenues of €896.6m in 2024. This would reflect a satisfactory 2.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 10% to €1.28. In the lead-up to this report, the analysts had been modelling revenues of €888.9m and earnings per share (EPS) of €1.38 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
It might be a surprise to learn that the consensus price target was broadly unchanged at €14.50, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on EDAG Engineering Group, with the most bullish analyst valuing it at €15.00 and the most bearish at €13.50 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting EDAG Engineering Group is an easy business to forecast or the the analysts are all using similar assumptions.
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. The analysts are definitely expecting EDAG Engineering Group's growth to accelerate, with the forecast 2.6% annualised growth to the end of 2024 ranking favourably alongside historical growth of 1.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 5.1% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, EDAG Engineering Group is expected to grow slower 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 €14.50, 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. We have estimates - from multiple EDAG Engineering Group analysts - going out to 2026, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with EDAG Engineering Group .
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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.
