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Krones AG (ETR:KRN) Just Reported Third-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Shareholders might have noticed that Krones AG (ETR:KRN) filed its quarterly result this time last week. The early response was not positive, with shares down 2.5% to €111 in the past week. It was a credible result overall, with revenues of €1.4b and statutory earnings per share of €2.55 both in line with analyst estimates, showing that Krones is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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 Krones from ten analysts is for revenues of €5.87b in 2027. If met, it would imply a modest 3.8% increase on its revenue over the past 12 months. Per-share earnings are expected to rise 7.6% to €10.38. Before this earnings report, the analysts had been forecasting revenues of €5.92b and earnings per share (EPS) of €10.64 in 2027. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
See our latest analysis for Krones
It might be a surprise to learn that the consensus price target was broadly unchanged at €138, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values Krones at €173 per share, while the most bearish prices it at €105. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Krones shareholders.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Krones' past performance and to peers in the same industry. We would highlight that Krones' revenue growth is expected to slow, with the forecast 3.1% annualised growth rate until the end of 2027 being well below the historical 9.7% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. Factoring in the forecast slowdown in growth, it seems obvious that Krones is also expected to grow slower than other industry participants.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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 in mind, we wouldn't be too quick to come to a conclusion on Krones. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Krones analysts - going out to 2028, and you can see them free on our platform here.
You still need to take note of risks, for example - Krones has 1 warning sign we think you should be aware of.
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