KWS SAAT SE & Co. KGaA (ETR:KWS) missed earnings with its latest annual results, disappointing overly-optimistic forecasters. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €1.6b, statutory earnings missed forecasts by 16%, coming in at just €4.87 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the consensus forecast from KWS SAAT SE KGaA's six analysts is for revenues of €1.69b in 2027. This reflects a credible 3.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 13% to €5.44. Before this earnings report, the analysts had been forecasting revenues of €1.77b and earnings per share (EPS) of €5.68 in 2027. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the minor downgrade to earnings per share expectations.
View our latest analysis for KWS SAAT SE KGaA
Despite the cuts to forecast earnings, there was no real change to the €83.80 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on KWS SAAT SE KGaA, with the most bullish analyst valuing it at €95.00 and the most bearish at €72.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of KWS SAAT SE KGaA'shistorical trends, as the 3.9% annualised revenue growth to the end of 2027 is roughly in line with the 4.2% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 4.1% per year. So although KWS SAAT SE KGaA is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
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. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. 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.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for KWS SAAT SE KGaA going out to 2029, and you can see them free on our platform here.
You can also see our analysis of KWS SAAT SE KGaA's Board and CEO remuneration and experience, and whether company insiders have been buying stock.
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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.