EN
Swiss Re AG Just Recorded A 30% EPS Beat: Here's What Analysts Are Forecasting Next
Swiss Re AG (VTX:SREN) defied analyst predictions to release its third-quarter results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 2.2% to hit US$11b. Swiss Re also reported a statutory profit of US$4.53, which was an impressive 30% above what the analysts had forecast. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Swiss Re after the latest results.
After the latest results, the twelve analysts covering Swiss Re are now predicting revenues of US$42.6b in 2027. If met, this would reflect an okay 2.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to shrink 5.2% to US$15.60 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$42.5b and earnings per share (EPS) of US$15.59 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
View our latest analysis for Swiss Re
The analysts reconfirmed their price target of CHF127, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Swiss Re at CHF146 per share, while the most bearish prices it at CHF107. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Swiss Re is forecast to grow faster in the future than it has in the past, with revenues expected to display 2.0% 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 4.2% annually for the foreseeable future. Although Swiss Re'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 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. 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 CHF127, with the latest estimates not enough to have an impact on their price targets.
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 estimates - from multiple Swiss Re analysts - going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Swiss Re (including 1 which doesn't sit too well with us) .
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.