Ekopak NV (EBR:EKOP) Released Earnings Last Week And Analysts Lifted Their Price Target To €27.50

The analysts might have been a bit too bullish on Ekopak NV (EBR:EKOP), given that the company fell short of expectations when it released its yearly results last week. It was a pretty negative result overall, with revenues of €36m missing analyst predictions by 2.1%. Worse, the business reported a statutory loss of €0.21 per share, much larger than the analysts had forecast prior to the result. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Ekopak after the latest results.

See our latest analysis for Ekopak

Taking into account the latest results, the current consensus from Ekopak's two analysts is for revenues of €75.3m in 2024. This would reflect a substantial 109% increase on its revenue over the past 12 months. Ekopak is also expected to turn profitable, with statutory earnings of €0.03 per share. In the lead-up to this report, the analysts had been modelling revenues of €78.3m and earnings per share (EPS) of €0.24 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a large cut to earnings per share numbers.

The average price target climbed 11% to €27.50despite the reduced earnings forecasts, suggesting that this earnings impact could be a positive for the stock, once it passes.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Ekopak's rate of growth is expected to accelerate meaningfully, with the forecast 109% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 32% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 5.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that Ekopak is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Ekopak. They also downgraded Ekopak's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Ekopak going out as far as 2026, and you can see them free on our platform here.

You can also see whether Ekopak is carrying too much debt, and whether its balance sheet is healthy, for free on our platform 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.