In This Article:
HOCHTIEF Aktiengesellschaft (ETR:HOT) just released its quarterly report and things are looking bullish. HOCHTIEF beat earnings, with revenues hitting €8.9b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 15%. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for HOCHTIEF
Taking into account the latest results, the current consensus from HOCHTIEF's eight analysts is for revenues of €33.9b in 2025. This would reflect a solid 9.5% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 6.3% to €8.98 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €33.8b and earnings per share (EPS) of €8.95 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €119. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on HOCHTIEF, with the most bullish analyst valuing it at €138 and the most bearish at €96.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. The analysts are definitely expecting HOCHTIEF's growth to accelerate, with the forecast 7.6% annualised growth to the end of 2025 ranking favourably alongside historical growth of 4.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.6% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect HOCHTIEF to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at €119, with the latest estimates not enough to have an impact on their price targets.