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Analysts Have Made A Financial Statement On Vossloh AG's (ETR:VOS) Second-Quarter Report
Vossloh AG (ETR:VOS) shareholders are probably feeling a little disappointed, since its shares fell 4.2% to €48.58 in the week after its latest quarterly results. It was a credible result overall, with revenues of €396m and statutory earnings per share of €3.24 both in line with analyst estimates, showing that Vossloh is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the seven analysts covering Vossloh are now predicting revenues of €1.56b in 2026. If met, this would reflect an okay 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 36% to €1.94. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.56b and earnings per share (EPS) of €2.16 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.
Check out our latest analysis for Vossloh
It might be a surprise to learn that the consensus price target was broadly unchanged at €70.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Vossloh, with the most bullish analyst valuing it at €87.00 and the most bearish at €50.00 per share. 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.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Vossloh's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Vossloh's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 5.0% growth on an annualised basis. This is compared to a historical growth rate of 8.7% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Vossloh is also expected to grow slower than other industry participants.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Vossloh. 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 €70.00, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Vossloh going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for Vossloh (1 is a bit concerning!) that you need to take into consideration.
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