Vossloh AG (ETR:VOS) Second-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Vossloh AG (ETR:VOS) shareholders are probably feeling a little disappointed, since its shares fell 2.7% to €58.95 in the week after its latest quarterly results. Vossloh reported in line with analyst predictions, delivering revenues of €396m and statutory earnings per share of €3.24, 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.
After the latest results, the seven analysts covering Vossloh are now predicting revenues of €1.59b in 2026. If met, this would reflect a reasonable 7.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 37% to €2.54. In the lead-up to this report, the analysts had been modelling revenues of €1.59b and earnings per share (EPS) of €2.83 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.
See our latest analysis for Vossloh
The consensus price target held steady at €80.14, 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. There are some variant perceptions on Vossloh, with the most bullish analyst valuing it at €90.00 and the most bearish at €69.00 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Vossloh is an easy business to forecast or the the analysts are all using similar assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The analysts are definitely expecting Vossloh's growth to accelerate, with the forecast 16% annualised growth to the end of 2026 ranking favourably alongside historical growth of 8.2% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.9% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Vossloh to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Vossloh. 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.
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 Vossloh 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 Vossloh (at least 1 which is significant) , and understanding these should be part of your investment process.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.