The Kaufman & Broad S.A. (EPA:KOF) Second-Quarter Results Are Out And Analysts Have Published New Forecasts

The second-quarter results for Kaufman & Broad S.A. (EPA:KOF) were released last week, making it a good time to revisit its performance. Results overall were respectable, with statutory earnings of €2.73 per share roughly in line with what the analysts had forecast. Revenues of €265m came in 2.2% ahead of analyst predictions. 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 Kaufman & Broad after the latest results.

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Taking into account the latest results, Kaufman & Broad's seven analysts currently expect revenues in 2026 to be €1.15b, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.15b and earnings per share (EPS) of €2.80 in 2026. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate. This suggests that revenues are what the market is focusing on after the latest results.

View our latest analysis for Kaufman & Broad

We'd also point out that thatthe analysts have made no major changes to their price target of €37.44. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Kaufman & Broad at €40.10 per share, while the most bearish prices it at €34.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Kaufman & Broad is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kaufman & Broad's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Kaufman & Broad is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.4% annualised growth until the end of 2026. If achieved, this would be a much better result than the 5.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.3% per year. Although Kaufman & Broad's 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 clear take away from these updates is that the analysts made no change to their revenue estimates for next year, with the business apparently performing in line with their models. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €37.44, with the latest estimates not enough to have an impact on their price targets.

We have estimates for Kaufman & Broad from its seven analysts out to 2028, and you can see them free on our platform here.

You still need to take note of risks, for example - Kaufman & Broad has 1 warning sign we think you should be aware of.

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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.