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

Last week, you might have seen that NNIT A/S (CPH:NNIT) released its annual result to the market. The early response was not positive, with shares down 4.2% to kr.108 in the past week. Statutory earnings per share fell badly short of expectations, coming in at kr.3.04, some 24% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr.2.8b. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Check out our latest analysis for NNIT

Taking into account the latest results, the most recent consensus for NNIT from twin analysts is for revenues of kr.2.97b in 2021 which, if met, would be a satisfactory 4.8% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 114% to kr.6.58. Before this earnings report, the analysts had been forecasting revenues of kr.3.01b and earnings per share (EPS) of kr.7.21 in 2021. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target fell 5.7% to kr.116, with the analysts clearly linking lower forecast earnings to the performance of the stock price.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that NNIT's rate of growth is expected to accelerate meaningfully, with the forecast 4.8% revenue growth noticeably faster than its historical growth of 2.5%p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 10% next year. So it's clear that despite the acceleration in growth, NNIT is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for NNIT. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that NNIT's revenues are expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 2025, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for NNIT that you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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