It's been a good week for CBo Territoria Société Anonyme (EPA:CBOT) shareholders, because the company has just released its latest full-year results, and the shares gained 2.1% to €3.85. It was an okay result overall, with revenues coming in at €104m, roughly what the analyst had been expecting. Following the result, the analyst has updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analyst has changed their mind on CBo Territoria Société Anonyme after the latest results.
Following the recent earnings report, the consensus from lone analyst covering CBo Territoria Société Anonyme is for revenues of €85.4m in 2021, implying a definite 18% decline in sales compared to the last 12 months. Statutory earnings per share are predicted to ascend 11% to €0.40. Yet prior to the latest earnings, the analyst had been anticipated revenues of €104.3m and earnings per share (EPS) of €0.54 in 2021. It looks like sentiment has declined substantially in the aftermath of these results, with a real cut to revenue estimates and a large cut to earnings per share numbers as well.
Despite the cuts to forecast earnings, there was no real change to the €4.50 price target, showing that the analyst doesn't think the changes have a meaningful impact on its intrinsic value.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that sales are expected to reverse, with a forecast 18% annualised revenue decline to the end of 2021. That is a notable change from historical growth of 10% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 4.0% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - CBo Territoria Société Anonyme is expected to lag the wider industry.
The Bottom Line
The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for CBo Territoria Société Anonyme. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at €4.50, with the latest estimates not enough to have an impact on their price target.
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. We have analyst estimates for CBo Territoria Société Anonyme going out as far as 2022, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for CBo Territoria Société Anonyme (1 makes us a bit uncomfortable!) that we have uncovered.
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