Analysts Have Made A Financial Statement On Össur hf.'s (CPH:OSSR) Yearly Report

Investors in Össur hf. (CPH:OSSR) had a good week, as its shares rose 5.8% to close at kr.40.25 following the release of its full-year results. It looks like the results were a bit of a negative overall. While revenues of US$719m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.7% to hit US$0.16 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Össur hf

Taking into account the latest results, the current consensus from Össur hf's five analysts is for revenues of US$783.7m in 2022, which would reflect a decent 9.0% increase on its sales over the past 12 months. Statutory earnings per share are predicted to bounce 25% to US$0.19. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$786.1m and earnings per share (EPS) of US$0.20 in 2022. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a minor downgrade to their earnings per share forecasts.

The consensus price target held steady at kr.48.46, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Össur hf analyst has a price target of kr.51.00 per share, while the most pessimistic values it at kr.42.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Össur hf is an easy business to forecast or the the analysts are all using similar assumptions.

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. The analysts are definitely expecting Össur hf's growth to accelerate, with the forecast 9.0% annualised growth to the end of 2022 ranking favourably alongside historical growth of 5.4% per annum over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 10% per year. Össur hf is expected to grow at about the same rate as its industry, so it's not clear that we can draw any conclusions from its growth relative to competitors.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Össur hf. Happily, there were no real changes to sales forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr.48.46, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Össur hf analysts - going out to 2024, and you can see them free on our platform here.

It might also be worth considering whether Össur hf's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.

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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.