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Earnings Update: DEUTZ Aktiengesellschaft (ETR:DEZ) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts
DEUTZ Aktiengesellschaft (ETR:DEZ) shareholders are probably feeling a little disappointed, since its shares fell 4.7% to €9.25 in the week after its latest quarterly results. Revenues came in 2.3% below expectations, at €554m. Statutory earnings per share were relatively better off, with a per-share profit of €0.37 being roughly in line with analyst estimates. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Following the latest results, DEUTZ's six analysts are now forecasting revenues of €3.70b in 2027. This would be a substantial 67% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to bounce 143% to €1.17. Yet prior to the latest earnings, the analysts had been anticipated revenues of €3.71b and earnings per share (EPS) of €1.22 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.
View our latest analysis for DEUTZ
The consensus price target held steady at €15.77, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. 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 DEUTZ at €19.00 per share, while the most bearish prices it at €12.60. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting DEUTZ's growth to accelerate, with the forecast 51% annualised growth to the end of 2027 ranking favourably alongside historical growth of 4.4% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect DEUTZ to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster 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 DEUTZ going out to 2028, and you can see them free on our platform here.
It is also worth noting that we have found 2 warning signs for DEUTZ that you need to take into consideration.
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