Nedap N.V. Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

Nedap N.V. (AMS:NEDAP) just released its latest full-year results and things are looking bullish. The company beat both earnings and revenue forecasts, with revenue of €190m, some 3.8% above estimates, and statutory earnings per share (EPS) coming in at €2.13, 40% ahead of expectations. 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 Nedap after the latest results.

See our latest analysis for Nedap

Taking into account the latest results, the most recent consensus for Nedap from solitary analyst is for revenues of €199.0m in 2021 which, if met, would be a modest 4.8% increase on its sales over the past 12 months. Per-share earnings are expected to increase 4.4% to €2.22. Yet prior to the latest earnings, the analyst had been anticipated revenues of €192.0m and earnings per share (EPS) of €1.61 in 2021. There's been a pretty noticeable increase in sentiment, with the analyst upgrading revenues and making a great increase in earnings per share in particular.

Althoughthe analyst has upgraded their earnings estimates, there was no change to the consensus price target of €52.00, suggesting that the forecast performance does not have a long term impact on the company's valuation.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analyst is definitely expecting Nedap's growth to accelerate, with the forecast 4.8% growth ranking favourably alongside historical growth of 2.0% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 9.0% next year. It seems obvious that, while the future growth outlook is brighter than the recent past, Nedap is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Nedap following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse 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.

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 Nedap going out as far as 2025, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Nedap you should be aware of, and 1 of them is significant.

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