ArcticZymes Technologies ASA Just Beat Earnings Expectations: Here's What Analysts Think Will Happen Next

It's been a sad week for ArcticZymes Technologies ASA (OB:AZT), who've watched their investment drop 13% to kr21.00 in the week since the company reported its second-quarter result. Revenues kr28m disappointed slightly, at5.9% below what the analysts had predicted. Profits were a relative bright spot, with statutory per-share earnings of kr0.05 coming in 12% above what was anticipated. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for ArcticZymes Technologies

Following the latest results, ArcticZymes Technologies' twin analysts are now forecasting revenues of kr121.9m in 2024. This would be an okay 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 23% to kr0.35. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr129.0m and earnings per share (EPS) of kr0.45 in 2024. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a pretty serious reduction to earnings per share numbers.

The consensus price target fell 11% to kr24.50, with the weaker earnings outlook clearly leading valuation estimates.

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 would highlight that ArcticZymes Technologies' revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2024 being well below the historical 12% 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 43% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than ArcticZymes Technologies.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ArcticZymes Technologies. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. 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. We have analyst estimates for ArcticZymes Technologies going out as far as 2026, and you can see them free on our platform here.

We also provide an overview of the ArcticZymes Technologies Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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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.