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The Evonik Industries AG (ETR:EVK) Third-Quarter Results Are Out And Analysts Have Published New Forecasts
Investors in Evonik Industries AG (ETR:EVK) had a good week, as its shares rose 2.4% to close at €21.52 following the release of its quarterly results. Evonik Industries reported in line with analyst predictions, delivering revenues of €3.8b and statutory earnings per share of €0.57, suggesting the business is executing well and in line with its plan. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following last week's earnings report, Evonik Industries' twelve analysts are forecasting 2027 revenues to be €14.6b, approximately in line with the last 12 months. Per-share earnings are expected to surge 205% to €1.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of €14.6b and earnings per share (EPS) of €1.13 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 Evonik Industries
There were no changes to revenue or earnings estimates or the price target of €18.87, suggesting that the company has met expectations in its recent result. 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. The most optimistic Evonik Industries analyst has a price target of €22.00 per share, while the most pessimistic values it at €15.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's also worth noting that the years of declining revenue look to have come to an end, with the forecast stauing flat to the end of 2027. Historically, Evonik Industries' top line has shrunk approximately 3.5% annually 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 3.4% annually. Although Evonik Industries' revenues are expected to improve, it seems that it is still expected to grow slower than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Evonik Industries' revenue is expected to perform worse than the wider industry. The consensus price target held steady at €18.87, 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 Evonik Industries. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Evonik Industries analysts - going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Evonik Industries , and understanding them should be part of your investment process.
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