Earnings Miss: ArcticZymes Technologies ASA Missed EPS By 17% And Analysts Are Revising Their Forecasts

Last week, you might have seen that ArcticZymes Technologies ASA (OB:AZT) released its quarterly result to the market. The early response was not positive, with shares down 7.0% to kr23.90 in the past week. It was not a great result overall. While revenues of kr30m were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 17% to hit kr0.06 per share. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

Check out our latest analysis for ArcticZymes Technologies

After the latest results, the solitary analyst covering ArcticZymes Technologies are now predicting revenues of kr122.0m in 2024. If met, this would reflect an okay 3.0% improvement in revenue compared to the last 12 months. Before this earnings report, the analyst had been forecasting revenues of kr127.3m and earnings per share (EPS) of kr0.39 in 2024. Overall, while there's been a minor downgrade to revenue estimates, the consensus now no longer provides an EPS estimate. This implies that the market believes revenue is more important following the latest results.

The average price target fell 24% to kr25.00, withthe analyst clearly having become less optimistic about ArcticZymes Technologies'prospects following its latest earnings.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that ArcticZymes Technologies' revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2024 being well below the historical 13% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 34% annually. 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 clear low-light was that the analyst cut their forecast revenue estimates for ArcticZymes Technologies next year. Unfortunately, they also downgraded their revenue estimates, and our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of ArcticZymes Technologies' future valuation.

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

However, before you get too enthused, we've discovered 1 warning sign for ArcticZymes Technologies that you should be aware 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.