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Schindler Holding AG Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
It's been a pretty great week for Schindler Holding AG (VTX:SCHN) shareholders, with its shares surging 11% to CHF292 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of CHF2.8b were in line with what the analysts predicted, Schindler Holding surprised by delivering a statutory profit of CHF2.81 per share, a notable 11% above expectations. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Schindler Holding after the latest results.
Taking into account the latest results, the consensus forecast from Schindler Holding's 16 analysts is for revenues of CHF11.8b in 2027. This reflects a satisfactory 7.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to swell 12% to CHF11.25. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF11.7b and earnings per share (EPS) of CHF11.01 in 2027. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
See our latest analysis for Schindler Holding
There's been no major changes to the consensus price target of CHF304, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. Currently, the most bullish analyst values Schindler Holding at CHF345 per share, while the most bearish prices it at CHF236. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. For example, we noticed that Schindler Holding's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 6.0% growth to the end of 2027 on an annualised basis. That is well above its historical decline of 0.8% a year 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 7.9% per year. So although Schindler Holding's revenue growth is expected to improve, it is still expected to grow slower than the industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Schindler Holding following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Schindler Holding'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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Schindler Holding going out to 2028, and you can see them free on our platform here.
Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.
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