Aktieselskabet Schouw & Co. Just Missed EPS By 21%: Here's What Analysts Think Will Happen Next

Aktieselskabet Schouw & Co. (CPH:SCHO) missed earnings with its latest third-quarter results, disappointing overly-optimistic forecasters. Results showed a clear earnings miss, with kr.9.5b revenue coming in 5.3% lower than what the analystsexpected. Statutory earnings per share (EPS) of kr.14.62 missed the mark badly, arriving some 21% below what was expected. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Aktieselskabet Schouw after the latest results.

Check out our latest analysis for Aktieselskabet Schouw

Taking into account the latest results, the current consensus from Aktieselskabet Schouw's dual analysts is for revenues of kr.36.2b in 2025. This would reflect a satisfactory 3.6% increase on its revenue over the past 12 months. Per-share earnings are expected to grow 17% to kr.48.19. In the lead-up to this report, the analysts had been modelling revenues of kr.36.4b and earnings per share (EPS) of kr.55.43 in 2025. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.

The consensus price target held steady at kr.698, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

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. We would highlight that Aktieselskabet Schouw's revenue growth is expected to slow, with the forecast 2.9% annualised growth rate until the end of 2025 being well below the historical 15% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Aktieselskabet Schouw.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Aktieselskabet Schouw. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse 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. We have analyst estimates for Aktieselskabet Schouw going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Aktieselskabet Schouw 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.