TCM Group A/S Just Missed EPS By 19%: Here's What Analysts Think Will Happen Next

It's been a good week for TCM Group A/S (CPH:TCM) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.0% to kr.78.40. It was not a great result overall. While revenues of kr.308m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 19% to hit kr.1.15 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Following the latest results, TCM Group's twin analysts are now forecasting revenues of kr.1.31b in 2025. This would be a modest 7.2% improvement in revenue compared to the last 12 months. Per-share earnings are expected to accumulate 4.1% to kr.6.26. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.1.32b and earnings per share (EPS) of kr.6.38 in 2025. 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.

See our latest analysis for TCM Group

There were no changes to revenue or earnings estimates or the price target of kr.97.00, suggesting that the company has met expectations in its recent result.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the TCM Group's past performance and to peers in the same industry. It's clear from the latest estimates that TCM Group's rate of growth is expected to accelerate meaningfully, with the forecast 9.7% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.3% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 6.5% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TCM Group 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider 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. At least one analyst has provided forecasts out to 2027, which can be seen for free on our platform here.

Before you take the next step you should know about the 2 warning signs for TCM Group that we have uncovered.

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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.