Earnings Update: The Kingfish Company N.V. (OB:KING) Just Reported And Analysts Are Trimming Their Forecasts

The analyst might have been a bit too bullish on The Kingfish Company N.V. (OB:KING), given that the company fell short of expectations when it released its half-year results last week. Unfortunately, Kingfish delivered a serious earnings miss. Revenues of €13m were 18% below expectations, and statutory losses ballooned 50% to €0.12 per share. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Kingfish

Taking into account the latest results, the most recent consensus for Kingfish from solitary analyst is for revenues of €31.1m in 2024. If met, it would imply a huge 29% increase on its revenue over the past 12 months. Losses are expected to increase substantially, hitting €0.21 per share. Before this latest report, the consensus had been expecting revenues of €37.5m and €0.13 per share in losses. So there's been quite a change-up of views after the recent consensus updates, withthe analyst making a serious cut to their revenue outlook while also expecting losses per share to increase.

The consensus price target fell 38% to kr5.84, with the analyst clearly concerned about the company following the weaker revenue and earnings outlook.

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. It's clear from the latest estimates that Kingfish's rate of growth is expected to accelerate meaningfully, with the forecast 66% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 33% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to grow their revenue 8.2% annually. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect Kingfish 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 Kingfish. They also downgraded Kingfish's revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 Kingfish going out as far as 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 4 warning signs for Kingfish that you need to be mindful of.

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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.