Earnings Update: HORNBACH Holding AG & Co. KGaA (ETR:HBH) Just Reported Its Third-Quarter Results And Analysts Are Updating Their Forecasts

HORNBACH Holding AG & Co. KGaA (ETR:HBH) last week reported its latest quarterly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. HORNBACH Holding KGaA reported in line with analyst predictions, delivering revenues of €1.5b and statutory earnings per share of €8.80, suggesting the business is executing well and in line with its plan. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, HORNBACH Holding KGaA's six analysts currently expect revenues in 2027 to be €6.50b, approximately in line with the last 12 months. Per-share earnings are expected to climb 18% to €9.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.50b and earnings per share (EPS) of €9.92 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.

Check out our latest analysis for HORNBACH Holding KGaA

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €108. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic HORNBACH Holding KGaA analyst has a price target of €118 per share, while the most pessimistic values it at €88.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting HORNBACH Holding KGaA is an easy business to forecast or the the analysts are all using similar assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the HORNBACH Holding KGaA's past performance and to peers in the same industry. We would highlight that HORNBACH Holding KGaA's revenue growth is expected to slow, with the forecast 1.4% annualised growth rate until the end of 2027 being well below the historical 2.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.5% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than HORNBACH Holding KGaA.

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. 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for HORNBACH Holding KGaA going out to 2028, and you can see them free on our platform here..

You can also see whether HORNBACH Holding KGaA is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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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.