Earnings Miss: ABL Group ASA Missed EPS By 41% And Analysts Are Revising Their Forecasts

ABL Group ASA (OB:ABL) shareholders are probably feeling a little disappointed, since its shares fell 5.7% to kr16.50 in the week after its latest full-year results. It looks like a pretty bad result, all things considered. Although revenues of US$168m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 41% to hit US$0.06 per share. 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

Check out our latest analysis for ABL Group

Taking into account the latest results, the most recent consensus for ABL Group from solitary analyst is for revenues of US$200.0m in 2023 which, if met, would be a decent 19% increase on its sales over the past 12 months. In the lead-up to this report, the analyst had been modelling revenues of US$200.3m and earnings per share (EPS) of US$0.14 in 2023. So we can see that while the consensus made no real change to its revenue estimates, it also no longer provides an earnings per share estimate, suggesting that revenues are what the market is focusing on after the latest results.

We'd also point out that thatthe analyst has made no major changes to their price target of kr17.03.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that ABL Group's revenue growth is expected to slow, with the forecast 19% annualised growth rate until the end of 2023 being well below the historical 37% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 13% annually. Even after the forecast slowdown in growth, it seems obvious that ABL Group is also expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analyst reconfirmed their revenue estimates for next year, suggesting that the business is performing in line with expectations. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr17.03, with the latest estimates not enough to have an impact on their price target.

We have estimates for ABL Group from one covering analyst, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for ABL Group 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.