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. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Following the latest results, Gestamp Automoción's ten analysts are now forecasting revenues of €11.6b in 2027. This would be a credible 2.9% improvement in revenue compared to the last 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. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
Check out 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. 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 Gestamp Automoción at €4.47 per share, while the most bearish prices it at €2.50. 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. It's pretty clear that there is an expectation that Gestamp Automoción's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 2.3% growth on an annualised basis. This is compared to a historical growth rate of 5.5% over the past 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. So it's pretty clear that, while Gestamp Automoción's revenue growth is expected to slow, it's expected to grow roughly in line with the 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 €3.42, 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 forecasts for Gestamp Automoción 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 3 warning signs for Gestamp Automoción you should be aware of, and 1 of them is a bit concerning.
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