Investors in ElringKlinger AG (ETR:ZIL2) had a good week, as its shares rose 5.9% to close at €4.56 following the release of its quarterly results. Revenues were €408m, and ElringKlinger came in a solid 13% ahead of expectations. 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. Readers will be glad to know we’ve aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ElringKlinger after the latest results.
After the latest results, the consensus from ElringKlinger’s dual analysts is for revenues of €1.62b in 2025, which would reflect a noticeable 6.3% decline in revenue compared to the last year of performance. Earnings are expected to improve, with ElringKlinger forecast to report a statutory profit of €0.31 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.64b and earnings per share (EPS) of €0.33 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
View our latest analysis for ElringKlinger
The consensus price target held steady at €6.00, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that revenue is expected to reverse, with a forecast 12% annualised decline to the end of 2025. That is a notable change from historical growth of 4.1% 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 2.4% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining – ElringKlinger is expected to lag the wider industry.
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ElringKlinger. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it’s tracking in line with expectations. Although our data does suggest that ElringKlinger’s revenue is expected to perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn’t be too quick to come to a conclusion on ElringKlinger. Long-term earnings power is much more important than next year’s profits. We have analyst estimates for ElringKlinger going out as far as 2027, and you can see them free on our platform here.
We don’t want to rain on the parade too much, but we did also find 1 warning sign for ElringKlinger that you need to be mindful of.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.