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Investors in Schindler Holding AG (VTX:SCHN) had a good week, as its shares rose 2.1% to close at CHF220 following the release of its quarterly results. Schindler Holding reported CHF2.7b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CHF2.05 beat expectations, being 8.2% 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Schindler Holding
Taking into account the latest results, Schindler Holding's 18 analysts currently expect revenues in 2024 to be CHF11.5b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 4.3% to CHF8.59. In the lead-up to this report, the analysts had been modelling revenues of CHF11.5b and earnings per share (EPS) of CHF8.61 in 2024. 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 CHF232. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Schindler Holding analyst has a price target of CHF275 per share, while the most pessimistic values it at CHF204. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Schindler Holding shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Schindler Holding's past performance and to peers in the same industry. We can infer from the latest estimates that forecasts expect a continuation of Schindler Holding'shistorical trends, as the 1.3% annualised revenue growth to the end of 2024 is roughly in line with the 1.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 6.1% annually. So although Schindler Holding is expected to maintain its revenue growth rate, it's forecast to grow slower than the wider industry.