Ice Fish Farm AS (OB:IFISH) shareholders are probably feeling a little disappointed, since its shares fell 6.3% to kr24.00 in the week after its latest first-quarter results. It was a pretty negative result overall, with revenues of kr156m missing analyst predictions by 3.7%. Worse, the business reported a statutory loss of kr0.25 per share, a substantial decline on analyst expectations of a profit. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Ice Fish Farm from twin analysts is for revenues of kr515.8m in 2022 which, if met, would be a sizeable 27% increase on its sales over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 22% to kr1.00. Yet prior to the latest earnings, the analysts had been forecasting revenues of kr481.3m and losses of kr0.29 per share in 2022. So it's pretty clear the analysts have mixed opinions on Ice Fish Farm even after this update; although they upped their revenue numbers, it came at the cost of a considerable increase to per-share losses.
It will come as no surprise that expanding losses caused the consensus price target to fall 6.3% to kr37.50with the analysts implicitly ranking ongoing losses as a greater concern than growing revenues.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Ice Fish Farm'shistorical trends, as the 37% annualised revenue growth to the end of 2022 is roughly in line with the 32% annual revenue growth over the past year. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.3% annually. So although Ice Fish Farm is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Ice Fish Farm. 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
It is also worth noting that we have found 3 warning signs for Ice Fish Farm 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.