Analysts Are Updating Their Nilfisk Holding A/S (CPH:NLFSK) Estimates After Its Half-Year Results

Shareholders might have noticed that Nilfisk Holding A/S (CPH:NLFSK) filed its half-year result this time last week. The early response was not positive, with shares down 2.1% to kr.119 in the past week. Nilfisk Holding reported in line with analyst predictions, delivering revenues of €537m and statutory earnings per share of €1.30, suggesting the business is executing well and in line with its plan. 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. 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 Nilfisk Holding

Taking into account the latest results, the consensus forecast from Nilfisk Holding's three analysts is for revenues of €1.07b in 2024. This reflects a satisfactory 2.7% improvement in revenue compared to the last 12 months. Per-share earnings are expected to soar 34% to €1.82. In the lead-up to this report, the analysts had been modelling revenues of €1.07b and earnings per share (EPS) of €1.84 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.

The analysts reconfirmed their price target of kr.183, 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. There are some variant perceptions on Nilfisk Holding, with the most bullish analyst valuing it at kr.200 and the most bearish at kr.175 per share. So we wouldn't be assigning too much credibility to analyst price targets in this case, because there are clearly some widely different views on what kind of performance this business can generate. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Nilfisk Holding's rate of growth is expected to accelerate meaningfully, with the forecast 5.4% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 3.2% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 4.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Nilfisk Holding is expected to grow at about the same rate as 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. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr.183, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Nilfisk Holding going out to 2026, and you can see them free on our platform here.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Nilfisk Holding , and understanding it should be part of your investment process.

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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.