Revenue Beat: TKMS AG & Co KGaA Exceeded Revenue Forecasts By 19% And Analysts Are Updating Their Estimates
It's been a pretty great week for TKMS AG & Co KGaA (ETR:TKMS) shareholders, with its shares surging 18% to €104 in the week since its latest quarterly results. TKMS & Co KGaA beat revenue forecasts by a solid 19% to hit €722m. Statutory earnings per share came in at €1.65, in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 current consensus from TKMS & Co KGaA's seven analysts is for revenues of €2.80b in 2027. This would reflect a solid 13% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 112% to €2.70. In the lead-up to this report, the analysts had been modelling revenues of €2.67b and earnings per share (EPS) of €2.57 in 2027. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.
Check out our latest analysis for TKMS & Co KGaA
It will come as no surprise to learn that the analysts have increased their price target for TKMS & Co KGaA 11% to €111on the back of these upgrades. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values TKMS & Co KGaA at €140 per share, while the most bearish prices it at €95.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await TKMS & Co KGaA shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting TKMS & Co KGaA's growth to accelerate, with the forecast 11% annualised growth to the end of 2027 ranking favourably alongside historical growth of 7.6% per annum over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 21% annually. It seems obvious that, while the future growth outlook is brighter than the recent past, TKMS & Co KGaA is expected to grow slower than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards TKMS & Co KGaA following these results. They also upgraded their revenue estimates for next year, even though it is expected to grow slower than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that in mind, we wouldn't be too quick to come to a conclusion on TKMS & Co KGaA. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple TKMS & Co KGaA analysts - going out to 2028, 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 TKMS & Co KGaA 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.