Trifork Group AG Just Missed Earnings - But Analysts Have Updated Their Models

As you might know, Trifork Group AG (CPH:TRIFOR) last week released its latest quarterly, and things did not turn out so great for shareholders. Results showed a clear earnings miss, with €52m revenue coming in 8.9% lower than what the analystsexpected. Statutory earnings per share (EPS) of €0.05 missed the mark badly, arriving some 64% below what was expected. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Trifork Group

Taking into account the latest results, the most recent consensus for Trifork Group from three analysts is for revenues of €222.0m in 2024. If met, it would imply a reasonable 7.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to plunge 50% to €0.45 in the same period. Before this earnings report, the analysts had been forecasting revenues of €227.5m and earnings per share (EPS) of €0.59 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

The analysts made no major changes to their price target of kr.142, suggesting the downgrades are not expected to have a long-term impact on Trifork Group's 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. Currently, the most bullish analyst values Trifork Group at kr.150 per share, while the most bearish prices it at kr.130. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

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. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 16% growth on an annualised basis. That is in line with its 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.8% annually. So although Trifork Group is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also downgraded Trifork Group's revenue estimates, but industry data suggests that it 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 Simply Wall St, we have a full range of analyst estimates for Trifork Group going out to 2026, and you can see them free on our platform here..

Before you take the next step you should know about the 1 warning sign for Trifork Group that we have uncovered.

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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.