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Geberit AG (VTX:GEBN) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Investors in Geberit AG (VTX:GEBN) had a good week, as its shares rose 2.6% to close at CHF591 following the release of its quarterly results. It was a credible result overall, with revenues of CHF824m and statutory earnings per share of CHF18.04 both in line with analyst estimates, showing that Geberit 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Geberit from 15 analysts is for revenues of CHF3.44b in 2027. If met, it would imply a modest 5.9% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 8.0% to CHF21.13. In the lead-up to this report, the analysts had been modelling revenues of CHF3.45b and earnings per share (EPS) of CHF21.14 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Geberit
There were no changes to revenue or earnings estimates or the price target of CHF592, suggesting that the company has met expectations in its recent result. 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 Geberit, with the most bullish analyst valuing it at CHF712 and the most bearish at CHF484 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. One thing stands out from these estimates, which is that Geberit is forecast to grow faster in the future than it has in the past, with revenues expected to display 4.7% annualised growth until the end of 2027. If achieved, this would be a much better result than the 2.3% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.3% annually for the foreseeable future. Although Geberit'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 most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. 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 CHF592, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Geberit. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Geberit analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 1 warning sign we've spotted with Geberit .
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