Yahoo Finance Earnings Report: Kuehne + Nagel International AG Missed Revenue Estimates By 11%
Last week, you might have seen that Kuehne + Nagel International AG (VTX:KNIN) released its first-quarter result to the market. The early response was not positive, with shares down 2.4% to CHF243 in the past week. Revenues were CHF5.5b, 11% below analyst expectations, although losses didn't appear to worsen significantly, with a statutory per-share loss of CHF2.30 being in line with what the analysts anticipated. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Check out our latest analysis for Kuehne + Nagel International
Taking into account the latest results, the consensus forecast from Kuehne + Nagel International's 13 analysts is for revenues of CHF23.4b in 2024. This reflects a credible 3.3% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be CHF10.54, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of CHF23.5b and earnings per share (EPS) of CHF10.46 in 2024. 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.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at CHF242. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. Currently, the most bullish analyst values Kuehne + Nagel International at CHF308 per share, while the most bearish prices it at CHF170. 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 Kuehne + Nagel International's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 4.5% growth on an annualised basis. This is compared to a historical growth rate of 10% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 1.5% per year. Even after the forecast slowdown in growth, it seems obvious that Kuehne + Nagel International is also expected to grow faster than 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 major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at CHF242, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Kuehne + Nagel International. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Kuehne + Nagel International analysts - going out to 2026, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 3 warning signs for Kuehne + Nagel International (of which 2 are a bit concerning!) you should know about.
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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.
