KPS AG (ETR:KSC) just released its latest full-year results and things are looking bullish. KPS beat earnings, with revenues hitting €180m, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 13%. 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.

See our latest analysis for KPS

Taking into account the latest results, the current consensus from KPS' dual analysts is for revenues of €190.1m in 2023, which would reflect a credible 5.4% increase on its sales over the past 12 months. Per-share earnings are expected to grow 16% to €0.29. In the lead-up to this report, the analysts had been modelling revenues of €188.1m and earnings per share (EPS) of €0.30 in 2023. 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.

The consensus price target fell 15% to €5.80, suggesting that the analysts might have been a bit enthusiastic in their previous valuation - or they were expecting the company to provide stronger guidance in the annual results.

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. One thing stands out from these estimates, which is that KPS is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.4% annualised growth until the end of 2023. If achieved, this would be a much better result than the 0.9% 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 9.9% annually for the foreseeable future. Although KPS' revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.