Earnings Miss: Aktieselskabet Schouw & Co. Missed EPS By 18% And Analysts Are Revising Their Forecasts

Aktieselskabet Schouw & Co. (CPH:SCHO) just released its latest quarterly report and things are not looking great. It wasn't a great result overall - while revenue fell marginally short of analyst estimates at kr.7.9b, statutory earnings missed forecasts by 18%, coming in at just kr.6.17 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Check out our latest analysis for Aktieselskabet Schouw

Taking into account the latest results, Aktieselskabet Schouw's three analysts currently expect revenues in 2024 to be kr.36.5b, approximately in line with the last 12 months. Per-share earnings are expected to increase 6.3% to kr.44.71. In the lead-up to this report, the analysts had been modelling revenues of kr.36.8b and earnings per share (EPS) of kr.43.88 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

There were no changes to revenue or earnings estimates or the price target of kr.678, suggesting that the company has met expectations in its recent result. 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. Currently, the most bullish analyst values Aktieselskabet Schouw at kr.700 per share, while the most bearish prices it at kr.665. This is a very narrow spread of estimates, implying either that Aktieselskabet Schouw is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Aktieselskabet Schouw's past performance and to peers in the same industry. We would highlight that Aktieselskabet Schouw's revenue growth is expected to slow, with the forecast 0.2% annualised growth rate until the end of 2024 being well below the historical 16% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 4.0% annually. Factoring in the forecast slowdown in growth, it seems obvious that Aktieselskabet Schouw is also expected to grow slower than other industry participants.

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. 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.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Aktieselskabet Schouw going out to 2026, and you can see them free on our platform here..

And what about risks? Every company has them, and we've spotted 1 warning sign for Aktieselskabet Schouw 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.