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Mercedes-Benz Group AG (ETR:MBG) came out with its annual results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Mercedes-Benz Group reported €146b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €10.19 beat expectations, being 3.1% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Mercedes-Benz Group
Taking into account the latest results, Mercedes-Benz Group's 19 analysts currently expect revenues in 2025 to be €143.4b, approximately in line with the last 12 months. Statutory earnings per share are expected to descend 19% to €8.61 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €143.3b and earnings per share (EPS) of €9.28 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
The consensus price target held steady at €68.55, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Mercedes-Benz Group at €106 per share, while the most bearish prices it at €47.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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 1.5% annualised decline to the end of 2025. That is a notable change from historical growth of 0.9% 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 2.4% annually for the foreseeable future. It's pretty clear that Mercedes-Benz Group's revenues are expected to perform substantially worse than the wider industry.