cBrain A/S (CPH:CBRAIN) Just Reported Annual Earnings And Analysts Are Lifting Their Estimates

By
Simply Wall St
Published
March 02, 2021
CPSE:CBRAIN
Source: Shutterstock

cBrain A/S (CPH:CBRAIN) last week reported its latest yearly results, which makes it a good time for investors to dive in and see if the business is performing in line with expectations. It looks like the results were a bit of a negative overall. While revenues of kr.120m were in line with analyst predictions, statutory earnings were less than expected, missing estimates by 2.5% to hit kr.0.78 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.

See our latest analysis for cBrain

earnings-and-revenue-growth
CPSE:CBRAIN Earnings and Revenue Growth March 3rd 2021

Taking into account the latest results, the current consensus from cBrain's sole analyst is for revenues of kr.147.0m in 2021, which would reflect a sizeable 22% increase on its sales over the past 12 months. Per-share earnings are expected to jump 28% to kr.1.00. In the lead-up to this report, the analyst had been modelling revenues of kr.139.9m and earnings per share (EPS) of kr.0.74 in 2021. So it seems there's been a definite increase in optimism about cBrain's future following the latest results, with a great increase in the earnings per share forecasts in particular.

It will come as no surprise to learn that the analyst has increased their price target for cBrain 69% to kr.110on the back of these upgrades.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the cBrain's past performance and to peers in the same industry. It's clear from the latest estimates that cBrain's rate of growth is expected to accelerate meaningfully, with the forecast 22% annualised revenue growth to the end of 2021 noticeably faster than its historical growth of 11% 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 9.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that cBrain is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards cBrain following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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. We have analyst estimates for cBrain going out as far as 2025, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with cBrain .

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This article by Simply Wall St is general in nature. 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.
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