Andritz AG Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
Andritz AG (VIE:ANDR) just released its third-quarter report and things are looking bullish. The company beat expectations with revenues of €2.1b arriving 3.6% ahead of forecasts. Statutory earnings per share (EPS) were €1.28, 5.6% ahead of 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, the current consensus from Andritz's seven analysts is for revenues of €8.94b in 2027. This would reflect a meaningful 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to grow 17% to €5.76. Yet prior to the latest earnings, the analysts had been anticipated revenues of €8.89b and earnings per share (EPS) of €5.70 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 Andritz
There were no changes to revenue or earnings estimates or the price target of €94.00, 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. Currently, the most bullish analyst values Andritz at €104 per share, while the most bearish prices it at €80.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.
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 Andritz's growth to accelerate, with the forecast 6.7% annualised growth to the end of 2027 ranking favourably alongside historical growth of 3.9% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 7.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Andritz is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as 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 Andritz. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Andritz 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 - Andritz has 1 warning sign we think you should be aware of.
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