Results: Landis+Gyr Group AG Beat Earnings Expectations And Analysts Now Have New Forecasts
It's been a good week for Landis+Gyr Group AG (VTX:LAND) shareholders, because the company has just released its latest half-yearly results, and the shares gained 8.0% to CHF59.30. It looks like a credible result overall - although revenues of US$729m were what the analysts expected, Landis+Gyr Group surprised by delivering a (statutory) profit of US$6.57 per share, an impressive 135% above what was forecast. 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.
View our latest analysis for Landis+Gyr Group
Following the latest results, Landis+Gyr Group's eight analysts are now forecasting revenues of US$1.57b in 2023. This would be a credible 5.4% improvement in sales compared to the last 12 months. Statutory earnings per share are expected to dive 29% to US$5.57 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$1.57b and earnings per share (EPS) of US$3.78 in 2023. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the very substantial lift in earnings per share expectations following these results.
There's been no major changes to the consensus price target of CHF64.85, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. The most optimistic Landis+Gyr Group analyst has a price target of CHF77.00 per share, while the most pessimistic values it at CHF53.45. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Landis+Gyr Group's past performance and to peers in the same industry. One thing stands out from these estimates, which is that Landis+Gyr Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2023. If achieved, this would be a much better result than the 5.2% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 7.4% per year. Not only are Landis+Gyr Group's revenues expected to improve, it seems that the analysts are also expecting it to grow faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Landis+Gyr Group's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CHF64.85, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Landis+Gyr Group going out to 2025, 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 2 warning signs with Landis+Gyr Group (at least 1 which is a bit unpleasant) , and understanding them should be part of your investment process.
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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