Earnings Miss: Arctic Fish Holding AS Missed EPS And Analysts Are Revising Their Forecasts

Shareholders might have noticed that Arctic Fish Holding AS (OB:AFISH) filed its third-quarter result this time last week. The early response was not positive, with shares down 6.7% to kr98.40 in the past week. Revenues missed expectations, with sales of kr116m falling 10% short of forecasts. Earnings correspondingly dipped, with Arctic Fish Holding reporting a statutory loss of kr0.77 per share, where the analysts were expecting a profit. 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 collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

Our analysis indicates that AFISH is potentially undervalued!

Taking into account the latest results, the most recent consensus for Arctic Fish Holding from twin analysts is for revenues of kr936.8m in 2023 which, if met, would be a major 43% increase on its sales over the past 12 months. Per-share earnings are expected to shoot up 428% to kr5.91. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr897.1m and earnings per share (EPS) of kr5.46 in 2023. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr115, suggesting that the forecast performance does not have a long term impact on the company's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Arctic Fish Holding's past performance and to peers in the same industry. The period to the end of 2023 brings more of the same, according to the analysts, with revenue forecast to display 33% growth on an annualised basis. That is in line with its 38% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.6% per year. So it's pretty clear that Arctic Fish Holding is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Arctic Fish Holding's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. The consensus price target held steady at kr115, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for Arctic Fish Holding you should be aware of, and 2 of them are significant.

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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.