Earnings Beat: ChemoMetec A/S Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

A week ago, ChemoMetec A/S (CPH:CHEMM) came out with a strong set of half-year numbers that could potentially lead to a re-rate of the stock. The company beat expectations with revenues of kr.199m arriving 2.7% ahead of forecasts. Statutory earnings per share (EPS) were kr.4.05, 6.6% ahead of estimates. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on ChemoMetec after the latest results.

See our latest analysis for ChemoMetec

After the latest results, the three analysts covering ChemoMetec are now predicting revenues of kr.420.5m in 2024. If met, this would reflect a reasonable 4.7% improvement in revenue compared to the last 12 months. Statutory per share are forecast to be kr.8.30, approximately in line with the last 12 months. Before this earnings report, the analysts had been forecasting revenues of kr.412.6m and earnings per share (EPS) of kr.8.15 in 2024. 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.452. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on ChemoMetec, with the most bullish analyst valuing it at kr.525 and the most bearish at kr.330 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.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that ChemoMetec's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 9.6% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. Compare this to the 50 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 9.9% per year. Factoring in the forecast slowdown in growth, it looks like ChemoMetec is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for ChemoMetec going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 1 warning sign for ChemoMetec that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.