Gestamp Automoción, S.A. (BME:GEST) shareholders are probably feeling a little disappointed, since its shares fell 3.2% to €2.75 in the week after its latest third-quarter results. It was an okay result overall, with revenues coming in at €2.6b, 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Gestamp Automoción after the latest results.
Taking into account the latest results, the most recent consensus for Gestamp Automoción from ten analysts is for revenues of €11.6b in 2027. If met, it would imply a reasonable 2.9% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to shoot up 31% to €0.43. Before this earnings report, the analysts had been forecasting revenues of €11.6b and earnings per share (EPS) of €0.43 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.
See our latest analysis for Gestamp Automoción
It will come as no surprise then, to learn that the consensus price target is largely unchanged at €3.42. 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. There are some variant perceptions on Gestamp Automoción, with the most bullish analyst valuing it at €4.47 and the most bearish at €2.50 per share. 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 Gestamp Automoción shareholders.
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. We would highlight that Gestamp Automoción's revenue growth is expected to slow, with the forecast 2.3% annualised growth rate until the end of 2027 being well below the historical 5.5% p.a. growth over the last five years. Compare this to the 59 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 2.7% per year. Factoring in the forecast slowdown in growth, it looks like Gestamp Automoción is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall 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 Gestamp Automoción. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Gestamp Automoción going out to 2028, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 3 warning signs for Gestamp Automoción (1 is potentially serious!) that you should be aware of.
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