Carl Zeiss Meditec AG Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions
A week ago, Carl Zeiss Meditec AG (ETR:AFX) came out with a strong set of quarterly numbers that could potentially lead to a re-rate of the stock. The company beat forecasts, with revenue of €563m, some 4.1% above estimates, and statutory earnings per share (EPS) coming in at €0.63, 137% ahead of expectations. 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.
Taking into account the latest results, the consensus forecast from Carl Zeiss Meditec's 13 analysts is for revenues of €2.29b in 2027. This reflects a reasonable 4.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 2.1% to €1.42. Before this earnings report, the analysts had been forecasting revenues of €2.29b and earnings per share (EPS) of €1.42 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.
View our latest analysis for Carl Zeiss Meditec
There were no changes to revenue or earnings estimates or the price target of €27.91, 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. Currently, the most bullish analyst values Carl Zeiss Meditec at €35.00 per share, while the most bearish prices it at €18.10. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. It's pretty clear that there is an expectation that Carl Zeiss Meditec's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 3.9% growth on an annualised basis. This is compared to a historical growth rate of 5.9% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.0% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Carl Zeiss Meditec.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Carl Zeiss Meditec's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €27.91, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Carl Zeiss Meditec going out to 2028, and you can see them free on our platform here..
And what about risks? Every company has them, and we've spotted 1 warning sign for Carl Zeiss Meditec you should know about.
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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.