Investors in Koninklijke KPN N.V. (AMS:KPN) had a good week, as its shares rose 5.4% to close at €4.33 following the release of its third-quarter results. Koninklijke KPN reported in line with analyst predictions, delivering revenues of €1.5b and statutory earnings per share of €0.06, suggesting the business is executing well and in line with its plan. 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 Koninklijke KPN's 17 analysts is for revenues of €6.03b in 2027. This reflects a credible 2.6% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 20% to €0.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of €6.02b and earnings per share (EPS) of €0.27 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 Koninklijke KPN
There were no changes to revenue or earnings estimates or the price target of €4.54, suggesting that the company has met expectations in its recent result. 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 Koninklijke KPN at €5.40 per share, while the most bearish prices it at €2.30. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The analysts are definitely expecting Koninklijke KPN's growth to accelerate, with the forecast 2.1% annualised growth to the end of 2027 ranking favourably alongside historical growth of 1.6% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 2.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Koninklijke KPN is expected to grow at about the same rate as the wider industry.
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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at €4.54, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Koninklijke KPN 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 Koninklijke KPN you should know about.
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