Forbo Holding AG (VTX:FORN) just released its latest annual report and things are not looking great. Forbo Holding missed analyst forecasts, with revenues of CHF1.1b and statutory earnings per share (EPS) of CHF67.45, falling short by 2.5% and 6.3% 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.
View our latest analysis for Forbo Holding
Taking into account the latest results, the current consensus from Forbo Holding's three analysts is for revenues of CHF1.18b in 2025. This would reflect a modest 5.2% increase on its revenue over the past 12 months. Per-share earnings are expected to expand 13% to CHF76.40. In the lead-up to this report, the analysts had been modelling revenues of CHF1.19b and earnings per share (EPS) of CHF81.93 in 2025. 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 CHF1,151, 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 Forbo Holding at CHF1,252 per share, while the most bearish prices it at CHF1,050. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Forbo Holding is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. For example, we noticed that Forbo Holding's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.2% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 0.8% a year 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 5.1% annually. So it looks like Forbo Holding is expected to grow at about the same rate as the wider industry.