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As you might know, TKH Group N.V. (AMS:TWEKA) recently reported its annual numbers. The result was positive overall - although revenues of €1.7b were in line with what the analysts predicted, TKH Group surprised by delivering a statutory profit of €2.50 per share, modestly greater than 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.
View our latest analysis for TKH Group
After the latest results, the six analysts covering TKH Group are now predicting revenues of €1.79b in 2025. If met, this would reflect an okay 4.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 2.7% to €2.56. Before this earnings report, the analysts had been forecasting revenues of €1.83b and earnings per share (EPS) of €2.91 in 2025. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a real cut to earnings per share numbers.
The average price target climbed 5.6% to €46.58despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes. 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 TKH Group analyst has a price target of €54.00 per share, while the most pessimistic values it at €41.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that TKH Group's revenue growth is expected to slow, with the forecast 4.6% annualised growth rate until the end of 2025 being well below the historical 6.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.6% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than TKH Group.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.