Penneo A/S (CPH:PENNEO) Released Earnings Last Week And Analysts Lifted Their Price Target To kr.10.00

As you might know, Penneo A/S (CPH:PENNEO) last week released its latest quarterly, and things did not turn out so great for shareholders. It was not a great statutory result, with revenues coming in 24% lower than the analyst predicted. Unsurprisingly, earnings also fell seriously short of forecasts, turning into a per-share loss of kr.0.22. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on Penneo after the latest results.

See our latest analysis for Penneo

Taking into account the latest results, the consensus forecast from Penneo's sole analyst is for revenues of kr.122.0m in 2025. This reflects a substantial 29% improvement in revenue compared to the last 12 months. Penneo is also expected to turn profitable, with statutory earnings of kr.0.10 per share. Yet prior to the latest earnings, the analyst had been anticipated revenues of kr.128.3m and earnings per share (EPS) of kr.0.06 in 2025. While revenue forecasts have been revised downwards, the analyst looks to have become more optimistic on the company's cost base, given the very substantial lift in to the earnings per share numbers.

The average price target increased 11% to kr.10.00, with the analyst signalling that the improved earnings outlook is more important to the company's valuation than its revenue.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The period to the end of 2025 brings more of the same, according to the analyst, with revenue forecast to display 22% growth on an annualised basis. That is in line with its 25% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 10% annually. So it's pretty clear that Penneo is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Penneo's earnings potential next year. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 analyst estimates for Penneo going out as far as 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Penneo that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.