Earnings Miss: Netcompany Group A/S Missed EPS By 12% And Analysts Are Revising Their Forecasts

There's been a notable change in appetite for Netcompany Group A/S (CPH:NETC) shares in the week since its full-year report, with the stock down 13% to kr.294. It was not a great result overall. While revenues of kr.6.5b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 12% to hit kr.9.60 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Netcompany Group

Taking into account the latest results, the consensus forecast from Netcompany Group's nine analysts is for revenues of kr.7.09b in 2025. This reflects a meaningful 8.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 35% to kr.13.51. Before this earnings report, the analysts had been forecasting revenues of kr.7.26b and earnings per share (EPS) of kr.14.60 in 2025. The analysts are less bullish than they were before these results, given the reduced revenue forecasts and the small dip in earnings per share expectations.

The consensus price target fell 6.5% to kr.326, with the weaker earnings outlook clearly leading valuation estimates. 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. Currently, the most bullish analyst values Netcompany Group at kr.385 per share, while the most bearish prices it at kr.300. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Netcompany Group's past performance and to peers in the same industry. We would highlight that Netcompany Group's revenue growth is expected to slow, with the forecast 8.4% annualised growth rate until the end of 2025 being well below the historical 21% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 4.5% annually. Even after the forecast slowdown in growth, it seems obvious that Netcompany Group is also expected to grow faster than the wider industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Netcompany Group. They also downgraded Netcompany Group's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that in mind, we wouldn't be too quick to come to a conclusion on Netcompany Group. 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 Netcompany Group going out to 2027, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Netcompany Group 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.