Knorr-Bremse AG Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
The analysts might have been a bit too bullish on Knorr-Bremse AG (ETR:KBX), given that the company fell short of expectations when it released its quarterly results last week. Knorr-Bremse missed analyst forecasts, with revenues of €2.1b and statutory earnings per share (EPS) of €1.09, falling short by 2.3% and 6.1% respectively. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Knorr-Bremse from 14 analysts is for revenues of €8.68b in 2027. If met, it would imply a credible 7.1% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 37% to €5.25. Before this earnings report, the analysts had been forecasting revenues of €8.76b and earnings per share (EPS) of €5.36 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
Check out our latest analysis for Knorr-Bremse
It might be a surprise to learn that the consensus price target was broadly unchanged at €118, 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. There are some variant perceptions on Knorr-Bremse, with the most bullish analyst valuing it at €131 and the most bearish at €94.00 per share. 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 Knorr-Bremse shareholders.
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 clear from the latest estimates that Knorr-Bremse's rate of growth is expected to accelerate meaningfully, with the forecast 5.6% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 3.8% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Knorr-Bremse is expected to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €118, with the latest estimates not enough to have an impact on their price targets.
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 Knorr-Bremse analysts - going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Knorr-Bremse , and understanding it should be part of your investment process.
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