Analysts Have Made A Financial Statement On TCM Group A/S' (CPH:TCM) Second-Quarter Report

Investors in TCM Group A/S (CPH:TCM) had a good week, as its shares rose 3.4% to close at kr.73.80 following the release of its second-quarter results. The result was positive overall - although revenues of kr.349m were in line with what the analysts predicted, TCM Group surprised by delivering a statutory profit of kr.2.13 per share, modestly greater than expected. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Following the latest results, TCM Group's dual analysts are now forecasting revenues of kr.1.28b in 2025. This would be a credible 3.8% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to shrink 4.2% to kr.6.14 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.1.32b and earnings per share (EPS) of kr.6.14 in 2025. So it looks like the analysts have become a bit less optimistic after the latest results announcement, with revenues expected to fall even as the company is supposed to maintain EPS.

View our latest analysis for TCM Group

The average price target was steady at kr.96.50even though revenue estimates declined; likely suggesting the analysts place a higher value on earnings.

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 clear from the latest estimates that TCM Group's rate of growth is expected to accelerate meaningfully, with the forecast 7.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.5% annually. TCM Group is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

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. They also downgraded their revenue estimates, although as we saw earlier, forecast growth is only expected to be about the same as the wider industry. With that said, earnings are more important to the long-term value of the business. 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.

With that in mind, we wouldn't be too quick to come to a conclusion on TCM Group. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for TCM Group you should know about.

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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.