Netcompany Group A/S Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Netcompany Group A/S (CPH:NETC) recently reported its quarterly numbers. Statutory earnings per share fell badly short of expectations, coming in at kr.1.17, some 38% below analyst forecasts, although revenues were okay, approximately in line with analyst estimates at kr.1.7b. 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.

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Taking into account the latest results, the current consensus from Netcompany Group's nine analysts is for revenues of kr.7.22b in 2025. This would reflect a modest 7.0% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 26% to kr.11.67. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.7.00b and earnings per share (EPS) of kr.12.29 in 2025. Overall it looks as though the analysts were a bit mixed on the latest results. Although there was a a modest to revenue, the consensus also made a minor downgrade to its earnings per share forecasts.

See our latest analysis for Netcompany Group

There's been no major changes to the price target of kr.318, suggesting that the impact of higher forecast revenue and lower earnings won't result in a meaningful change to the business' valuation. 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. There are some variant perceptions on Netcompany Group, with the most bullish analyst valuing it at kr.350 and the most bearish at kr.280 per share. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Netcompany Group is an easy business to forecast or the the analysts are all using similar assumptions.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Netcompany Group's revenue growth is expected to slow, with the forecast 14% annualised growth rate until the end of 2025 being well below the historical 19% 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 4.6% 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. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is 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.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Netcompany Group going out to 2027, and you can see them free on our platform here.

You can also view our analysis of Netcompany Group's balance sheet, and whether we think Netcompany Group is carrying too much debt, for free on our platform here.

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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.