ChemoMetec A/S (CPH:CHEMM) Consensus Forecasts Have Become A Little Darker Since Its Latest Report

It's been a sad week for ChemoMetec A/S (CPH:CHEMM), who've watched their investment drop 11% to kr.378 in the week since the company reported its annual result. It looks like the results were a bit of a negative overall. While revenues of kr.444m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.2% to hit kr.10.27 per share. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for ChemoMetec

After the latest results, the consensus from ChemoMetec's solitary analyst is for revenues of kr.429.0m in 2024, which would reflect a discernible 3.5% decline in revenue compared to the last year of performance. Statutory earnings per share are expected to descend 15% to kr.8.77 in the same period. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr.500.0m and earnings per share (EPS) of kr.11.60 in 2024. Indeed, we can see that the analyst is a lot more bearish about ChemoMetec's prospects following the latest results, administering a real cut to revenue estimates and slashing their EPS estimates to boot.

It'll come as no surprise then, to learn that the analyst has cut their price target 31% to kr.550.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the ChemoMetec's past performance and to peers in the same industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 3.5% by the end of 2024. This indicates a significant reduction from annual growth of 27% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - ChemoMetec is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analyst downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of ChemoMetec's future valuation.

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 least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

Plus, you should also learn about the 3 warning signs we've spotted with ChemoMetec (including 1 which is a bit concerning) .

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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.