Matas A/S Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Matas A/S (CPH:MATAS) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.2% to hit kr.2.0b. Matas also reported a statutory profit of kr.1.55, which was an impressive 29% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Matas after the latest results.

View our latest analysis for Matas

Following the latest results, Matas' three analysts are now forecasting revenues of kr.8.33b in 2025. This would be a decent 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 74% to kr.8.15. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.8.20b and earnings per share (EPS) of kr.8.18 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The consensus price target rose 8.6% to kr.168despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of Matas' earnings by assigning a price premium. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Matas analyst has a price target of kr.170 per share, while the most pessimistic values it at kr.165. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

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 clear from the latest estimates that Matas' rate of growth is expected to accelerate meaningfully, with the forecast 15% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 12% 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 6.5% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Matas is expected to grow much faster than its 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. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Matas going out to 2027, and you can see them free on our platform here..

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

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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.