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Hensoldt AG Just Missed EPS By 34%: Here's What Analysts Think Will Happen Next

Shareholders might have noticed that Hensoldt AG (ETR:5UH) filed its third-quarter result this time last week. The early response was not positive, with shares down 7.7% to €20.85 in the past week. Statutory earnings per share fell badly short of expectations, coming in at €0.15, some 34% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at €418m. 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.

See our latest analysis for Hensoldt

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Taking into account the latest results, the current consensus from Hensoldt's six analysts is for revenues of €1.95b in 2023, which would reflect a solid 13% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 68% to €1.21. Yet prior to the latest earnings, the analysts had been anticipated revenues of €1.98b and earnings per share (EPS) of €1.36 in 2023. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The average price target fell 9.8% to €26.60, with reduced earnings forecasts clearly tied to a lower valuation estimate.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Hensoldt's revenue growth is expected to slow, with the forecast 10% annualised growth rate until the end of 2023 being well below the historical 18% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 12% annually. Factoring in the forecast slowdown in growth, it looks like Hensoldt is forecast to grow at about the same rate as 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 Hensoldt. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Hensoldt's future valuation.

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 Hensoldt going out to 2024, and you can see them free on our platform here..

You still need to take note of risks, for example - Hensoldt has 1 warning sign we think you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

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