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It's been a mediocre week for KION GROUP AG (ETR:KGX) shareholders, with the stock dropping 11% to €34.26 in the week since its latest second-quarter results. Statutory earnings per share fell badly short of expectations, coming in at €0.52, some 25% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €2.9b. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 KION GROUP
Taking into account the latest results, KION GROUP's 16 analysts currently expect revenues in 2024 to be €11.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to grow 15% to €2.98. Before this earnings report, the analysts had been forecasting revenues of €11.5b and earnings per share (EPS) of €3.12 in 2024. 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 minor downgrade to their earnings per share forecasts.
It might be a surprise to learn that the consensus price target was broadly unchanged at €53.85, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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 KION GROUP at €67.00 per share, while the most bearish prices it at €43.00. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the KION GROUP's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.7% by the end of 2024. This indicates a significant reduction from annual growth of 7.7% 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 4.3% annually for the foreseeable future. It's pretty clear that KION GROUP's revenues are expected to perform substantially worse than the wider industry.