Knorr-Bremse AG (ETR:KBX) last week reported its latest second-quarter results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of €2.0b were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 5.1% to hit €0.90 per share. 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.

See our latest analysis for Knorr-Bremse

Taking into account the latest results, Knorr-Bremse's nine analysts currently expect revenues in 2024 to be €7.97b, approximately in line with the last 12 months. Statutory per share are forecast to be €3.75, approximately in line with the last 12 months. In the lead-up to this report, the analysts had been modelling revenues of €7.99b and earnings per share (EPS) of €3.74 in 2024. 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at €74.97. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Knorr-Bremse at €88.00 per share, while the most bearish prices it at €50.00. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 3.5% annualised decline to the end of 2024. That is a notable change from historical growth of 4.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Knorr-Bremse is expected to lag the wider industry.