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Last week saw the newest yearly earnings release from KION GROUP AG (ETR:KGX), an important milestone in the company's journey to build a stronger business. Revenues of €12b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €2.75, missing estimates by 2.1%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for KION GROUP
Following the recent earnings report, the consensus from 17 analysts covering KION GROUP is for revenues of €11.1b in 2025. This implies a noticeable 3.5% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to plummet 45% to €1.50 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €11.0b and earnings per share (EPS) of €2.21 in 2025. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a large cut to EPS estimates.
It might be a surprise to learn that the consensus price target was broadly unchanged at €46.97, 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. Currently, the most bullish analyst values KION GROUP at €63.00 per share, while the most bearish prices it at €37.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
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. We would highlight that revenue is expected to reverse, with a forecast 3.5% annualised decline to the end of 2025. That is a notable change from historical growth of 7.3% 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 4.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - KION GROUP is expected to lag the wider industry.