Here's What Analysts Are Forecasting For ArcticZymes Technologies ASA (OB:AZT) After Its First-Quarter Results

It's been a pretty great week for ArcticZymes Technologies ASA (OB:AZT) shareholders, with its shares surging 15% to kr86.45 in the week since its latest first-quarter results. Revenues were kr49m, and ArcticZymes Technologies came in a solid 16% ahead of expectations. 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for ArcticZymes Technologies

Taking into account the latest results, the current consensus from ArcticZymes Technologies' lone analyst is for revenues of kr158.0m in 2022, which would reflect a decent 14% increase on its sales over the past 12 months. Per-share earnings are expected to leap 31% to kr1.24. In the lead-up to this report, the analyst had been modelling revenues of kr158.5m and earnings per share (EPS) of kr1.27 in 2022. The analyst seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr132, with the analyst clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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. The analyst is definitely expecting ArcticZymes Technologies' growth to accelerate, with the forecast 19% annualised growth to the end of 2022 ranking favourably alongside historical growth of 13% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 57% per year. So it's clear that despite the acceleration in growth, ArcticZymes Technologies is expected to grow meaningfully slower than the industry average.

The Bottom Line

The biggest concern is that the analyst reduced their earnings per share estimates, suggesting business headwinds could lay ahead for ArcticZymes Technologies. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

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.

We don't want to rain on the parade too much, but we did also find 2 warning signs for ArcticZymes Technologies 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.