Investors in Amrize AG (VTX:AMRZ) had a good week, as its shares rose 4.2% to close at CHF33.85 following the release of its quarterly results. It was an okay result overall, with revenues coming in at US$3.8b, roughly what the analysts had been expecting. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Amrize's 22 analysts is for revenues of US$13.1b in 2027. This reflects an okay 6.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 19% to US$2.73. Before this earnings report, the analysts had been forecasting revenues of US$13.1b and earnings per share (EPS) of US$2.79 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for Amrize
It might be a surprise to learn that the consensus price target was broadly unchanged at CHF40.66, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on 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. Currently, the most bullish analyst values Amrize at CHF59.09 per share, while the most bearish prices it at CHF29.92. 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.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 5.1% growth on an annualised basis. That is in line with its 5.8% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.0% annually. It's clear that while Amrize's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.
The Bottom Line
The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Amrize. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Amrize analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 1 warning sign for Amrize that we have uncovered.
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