Penneo A/S (CPH:PENNEO) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Penneo A/S (CPH:PENNEO) missed earnings with its latest quarterly results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of kr.22m missing analyst predictions by 7.1%. Worse, the business reported a statutory loss of kr.0.29 per share, much larger than the analysts had forecast prior to the result. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Penneo

After the latest results, the twin analysts covering Penneo are now predicting revenues of kr.89.0m in 2023. If met, this would reflect a meaningful 11% improvement in revenue compared to the last 12 months. Losses are expected to increase substantially, hitting kr.0.81 per share. Before this latest report, the consensus had been expecting revenues of kr.88.0m and kr.0.72 per share in losses. So it's pretty clear the analysts have mixed opinions on Penneo even after this update; although they reconfirmed their revenue numbers, it came at the cost of a noticeable increase in per-share losses.

The consensus price target held steady at kr.11.00, seemingly implying that the higher forecast losses are not expected to have a long term impact on the company's valuation.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Penneo's revenue growth is expected to slow, with the forecast 23% annualised growth rate until the end of 2023 being well below the historical 32% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 8.1% annually. Even after the forecast slowdown in growth, it seems obvious that Penneo is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts increased their loss per share estimates for next year. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

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 least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.

It is also worth noting that we have found 4 warning signs for Penneo 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.