Netcompany Group A/S (CPH:NETC) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

It's been a good week for Netcompany Group A/S (CPH:NETC) shareholders, because the company has just released its latest third-quarter results, and the shares gained 3.7% to kr.318. Results were roughly in line with estimates, with revenues of kr.1.6b and statutory earnings per share of kr.2.86. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Netcompany Group

Taking into account the latest results, the consensus forecast from Netcompany Group's seven analysts is for revenues of kr.7.30b in 2025. This reflects a notable 13% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 72% to kr.15.01. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.7.34b and earnings per share (EPS) of kr.14.94 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.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.330. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Netcompany Group, with the most bullish analyst valuing it at kr.387 and the most bearish at kr.295 per share. This is a very narrow spread of estimates, implying either that Netcompany Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. It's pretty clear that there is an expectation that Netcompany Group's revenue growth will slow down substantially, with revenues to the end of 2025 expected to display 10% growth on an annualised basis. This is compared to a historical growth rate of 22% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.9% per year. 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 most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than 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.

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 2026, and you can see them free on our platform here..

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Netcompany Group , and understanding it should be part of your investment process.

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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.