Netcompany Group A/S (CPH:NETC) Second-Quarter Results: Here's What Analysts Are Forecasting For This Year

It's been a good week for Netcompany Group A/S (CPH:NETC) shareholders, because the company has just released its latest second-quarter results, and the shares gained 6.3% to kr.295. Results were roughly in line with estimates, with revenues of kr.1.7b and statutory earnings per share of kr.2.43. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Netcompany Group

Taking into account the latest results, the current consensus from Netcompany Group's eight analysts is for revenues of kr.6.62b in 2024. This would reflect a credible 5.2% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to leap 47% to kr.10.93. Before this earnings report, the analysts had been forecasting revenues of kr.6.61b and earnings per share (EPS) of kr.10.81 in 2024. 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.310. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Netcompany Group at kr.374 per share, while the most bearish prices it at kr.215. 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.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. 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 2024 expected to display 11% growth on an annualised basis. This is compared to a historical growth rate of 23% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% annually. So it's pretty clear that, while Netcompany Group's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

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. 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.

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. 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..

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

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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.