Analysts Have Made A Financial Statement On Geberit AG's (VTX:GEBN) Second-Quarter Report
It's been a good week for Geberit AG (VTX:GEBN) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.7% to CHF580. Results overall were respectable, with statutory earnings of CHF18.04 per share roughly in line with what the analysts had forecast. Revenues of CHF838m came in 4.0% ahead of analyst predictions. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
Taking into account the latest results, Geberit's 16 analysts currently expect revenues in 2026 to be CHF3.27b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be CHF19.35, roughly flat on the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CHF3.23b and earnings per share (EPS) of CHF18.86 in 2026. So the consensus seems to have become somewhat more optimistic on Geberit's earnings potential following these results.
Check out our latest analysis for Geberit
There's been no major changes to the consensus price target of CHF579, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Geberit, with the most bullish analyst valuing it at CHF698 and the most bearish at CHF465 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
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. One thing stands out from these estimates, which is that Geberit is forecast to grow faster in the future than it has in the past, with revenues expected to display 3.9% annualised growth until the end of 2026. If achieved, this would be a much better result than the 2.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 6.1% per year. Although Geberit's revenues are expected to improve, it seems that the analysts are still bearish on the business, forecasting it to grow slower than the broader industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Geberit's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Geberit's revenue is expected to perform worse than the wider industry. The consensus price target held steady at CHF579, 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. We have estimates - from multiple Geberit analysts - 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 Geberit you should know about.
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.