Kreate Group Oyj Just Missed Earnings - But Analysts Have Updated Their Models

Investors in Kreate Group Oyj (HEL:KREATE) had a good week, as its shares rose 8.8% to close at €9.19 following the release of its second-quarter results. Statutory earnings per share of €0.19 unfortunately missed expectations by 12%, although it was encouraging to see revenues of €67m exceed expectations by 9.6%. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for Kreate Group Oyj

Following the latest results, Kreate Group Oyj's twin analysts are now forecasting revenues of €271.3m in 2022. This would be a reasonable 2.8% improvement in sales compared to the last 12 months. Statutory earnings per share are forecast to reduce 2.1% to €0.86 in the same period. Before this earnings report, the analysts had been forecasting revenues of €257.6m and earnings per share (EPS) of €0.90 in 2022. So it's pretty clear consensus is mixed on Kreate Group Oyj after the latest results; whilethe analysts lifted revenue numbers, they also administered a small dip in per-share earnings expectations.

The analysts also cut Kreate Group Oyj's price target 6.7% to €10.50, implying that lower forecast earnings are expected to have a more negative impact than can be offset by the increase in sales.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Kreate Group Oyj's past performance and to peers in the same industry. We would highlight that Kreate Group Oyj's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2022 being well below the historical 21% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.1% annually. So it's pretty clear that, while Kreate Group Oyj'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 the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Kreate Group Oyj going out as far as 2024, and you can see them free on our platform here.

It is also worth noting that we have found 4 warning signs for Kreate Group Oyj 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.