Earnings Update: Pandora A/S (CPH:PNDORA) Just Reported Its Half-Year Results And Analysts Are Updating Their Forecasts

It's been a good week for Pandora A/S (CPH:PNDORA) shareholders, because the company has just released its latest interim results, and the shares gained 5.3% to kr.1,061. It was a credible result overall, with revenues of kr.14b and statutory earnings per share of kr.9.70 both in line with analyst estimates, showing that Pandora is executing in line with expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pandora after the latest results.

See our latest analysis for Pandora

Following the latest results, Pandora's 15 analysts are now forecasting revenues of kr.31.4b in 2024. This would be a satisfactory 4.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 8.2% to kr.65.19. In the lead-up to this report, the analysts had been modelling revenues of kr.31.3b and earnings per share (EPS) of kr.64.25 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.1,193, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Pandora, with the most bullish analyst valuing it at kr.1,400 and the most bearish at kr.920 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 9.4% growth on an annualised basis. That is in line with its 8.1% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 7.6% per year. It's clear that while Pandora's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

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 real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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 Pandora going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Pandora that you should be aware of.

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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.