Stock Analysis

Coloplast A/S Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

CPSE:COLO B
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The quarterly results for Coloplast A/S (CPH:COLO B) were released last week, making it a good time to revisit its performance. Revenues of kr.6.9b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr.5.66, missing estimates by 5.6%. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

View our latest analysis for Coloplast

earnings-and-revenue-growth
CPSE:COLO B Earnings and Revenue Growth August 23rd 2024

Taking into account the latest results, the consensus forecast from Coloplast's 19 analysts is for revenues of kr.29.3b in 2025. This reflects a meaningful 11% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 22% to kr.26.90. In the lead-up to this report, the analysts had been modelling revenues of kr.29.3b and earnings per share (EPS) of kr.27.03 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.913. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Coloplast, with the most bullish analyst valuing it at kr.1,060 and the most bearish at kr.700 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Coloplast shareholders.

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. We can infer from the latest estimates that forecasts expect a continuation of Coloplast'shistorical trends, as the 9.0% annualised revenue growth to the end of 2025 is roughly in line with the 8.6% 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 7.4% per year. So although Coloplast is expected to maintain its revenue growth rate, it's only growing at about the rate of 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. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr.913, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Coloplast. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Coloplast going out to 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Coloplast (at least 2 which are a bit concerning) , and understanding these should be part of your investment process.

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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.