Earnings Miss: Vitesco Technologies Group Aktiengesellschaft Missed EPS By 28% And Analysts Are Revising Their Forecasts
The analysts might have been a bit too bullish on Vitesco Technologies Group Aktiengesellschaft (ETR:VTSC), given that the company fell short of expectations when it released its quarterly results last week. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at €2.2b, statutory earnings missed forecasts by an incredible 28%, coming in at just €0.76 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for Vitesco Technologies Group
After the latest results, the twelve analysts covering Vitesco Technologies Group are now predicting revenues of €9.75b in 2024. If met, this would reflect a modest 4.8% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Vitesco Technologies Group forecast to report a statutory profit of €8.18 per share. In the lead-up to this report, the analysts had been modelling revenues of €9.71b and earnings per share (EPS) of €8.04 in 2024. 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.
There were no changes to revenue or earnings estimates or the price target of €94.64, suggesting that the company has met expectations in its recent result. 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. The most optimistic Vitesco Technologies Group analyst has a price target of €140 per share, while the most pessimistic values it at €67.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Vitesco Technologies Group's growth to accelerate, with the forecast 3.8% annualised growth to the end of 2024 ranking favourably alongside historical growth of 0.6% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.2% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Vitesco Technologies Group is expected to grow slower than 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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at €94.64, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Vitesco Technologies Group. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Vitesco Technologies Group going out to 2025, and you can see them free on our platform here..
You should always think about risks though. Case in point, we've spotted 1 warning sign for Vitesco Technologies Group you should be aware of.
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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.
