Analysts Have Made A Financial Statement On ALK-Abelló A/S' (CPH:ALK B) Second-Quarter Report

It's been a pretty great week for ALK-Abelló A/S (CPH:ALK B) shareholders, with its shares surging 14% to kr.181 in the week since its latest quarterly results. Overall the results were a little better than the analysts were expecting, with revenues beating forecasts by 4.6%to hit kr.1.4b. 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.

Check out our latest analysis for ALK-Abelló

After the latest results, the five analysts covering ALK-Abelló are now predicting revenues of kr.5.55b in 2024. If met, this would reflect a reasonable 7.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to soar 29% to kr.4.01. In the lead-up to this report, the analysts had been modelling revenues of kr.5.47b and earnings per share (EPS) of kr.3.67 in 2024. So the consensus seems to have become somewhat more optimistic on ALK-Abelló's earnings potential following these results.

The consensus price target was unchanged at kr.165, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. There are some variant perceptions on ALK-Abelló, with the most bullish analyst valuing it at kr.190 and the most bearish at kr.128 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

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. It's clear from the latest estimates that ALK-Abelló's rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 10% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.7% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that ALK-Abelló is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around ALK-Abelló's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr.165, 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 ALK-Abelló. 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 ALK-Abelló going out to 2026, and you can see them free on our platform here..

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our 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.