On Holding AG (NYSE:ONON) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was overall a positive result, with revenues beating expectations by 4.9% to hit CHF481m. On Holding also reported a statutory profit of CHF0.20, which was an impressive 59% above what the analysts had forecast. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for On Holding
Taking into account the latest results, the consensus forecast from On Holding's 19 analysts is for revenues of CHF2.34b in 2024. This reflects a huge 37% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 143% to CHF0.61. Yet prior to the latest earnings, the analysts had been anticipated revenues of CHF2.34b and earnings per share (EPS) of CHF0.61 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 US$35.48. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on On Holding, with the most bullish analyst valuing it at US$51.07 and the most bearish at US$21.07 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's pretty clear that there is an expectation that On Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 28% growth on an annualised basis. This is compared to a historical growth rate of 49% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.5% annually. Even after the forecast slowdown in growth, it seems obvious that On Holding 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 US$35.48, 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 On Holding going out to 2025, and you can see them free on our platform here.
We also provide an overview of the On Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.
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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.