FLSmidth & Co. A/S Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
FLSmidth & Co. A/S (CPH:FLS) just released its latest quarterly results and things are looking bullish. FLSmidth beat earnings, with revenues hitting kr.3.8b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 16%. 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.
Taking into account the latest results, the current consensus from FLSmidth's ten analysts is for revenues of kr.16.5b in 2027. This would reflect a meaningful 9.1% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 5.5% to kr.32.98. In the lead-up to this report, the analysts had been modelling revenues of kr.16.5b and earnings per share (EPS) of kr.32.97 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
Check out our latest analysis for FLSmidth
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.674. 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 FLSmidth analyst has a price target of kr.725 per share, while the most pessimistic values it at kr.615. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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. One thing stands out from these estimates, which is that FLSmidth is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.2% annualised growth until the end of 2027. If achieved, this would be a much better result than the 7.1% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 7.4% annually. So while FLSmidth's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 kr.674, 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 forecasts for FLSmidth going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for FLSmidth that you need to take into consideration.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.