Yahoo Finance Results: Mercedes-Benz Group AG Beat Earnings Expectations And Analysts Now Have New Forecasts
Last week, you might have seen that Mercedes-Benz Group AG (ETR:MBG) released its first-quarter result to the market. The early response was not positive, with shares down 4.2% to €70.94 in the past week. The result was positive overall - although revenues of €36b were in line with what the analysts predicted, Mercedes-Benz Group surprised by delivering a statutory profit of €2.86 per share, modestly greater than expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Mercedes-Benz Group
Following last week's earnings report, Mercedes-Benz Group's 19 analysts are forecasting 2024 revenues to be €151.9b, approximately in line with the last 12 months. Statutory earnings per share are expected to decrease 9.4% to €11.65 in the same period. Before this earnings report, the analysts had been forecasting revenues of €152.0b and earnings per share (EPS) of €11.68 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.
The analysts reconfirmed their price target of €86.73, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Mercedes-Benz Group at €125 per share, while the most bearish prices it at €60.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
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. From these estimates it looks as though the analysts expect the years of declining revenue to come to an end, given the flat forecast out to 2024. That would be a definite improvement, given that the past five years have seen revenue shrink 1.8% annually. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.7% per year. Although Mercedes-Benz Group's revenues are expected to improve, it seems that it is still expected to grow slower than 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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Mercedes-Benz Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at €86.73, 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 Mercedes-Benz Group. Long-term earnings power is much more important than next year's profits. We have forecasts for Mercedes-Benz Group going out to 2026, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for Mercedes-Benz Group (2 are concerning!) that you need to take into consideration.
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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.
