Elektroimportøren AS Just Beat Revenue Estimates By 6.4%

It's been a good week for Elektroimportøren AS (OB:ELIMP) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.9% to kr91.60. It was a workmanlike result, with revenues of kr346m coming in 6.4% ahead of expectations, and statutory earnings per share of kr3.94, in line with analyst appraisals. This is an important time for investors, as they can track a company's performance in its report, look at what expert is 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 analyst latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Elektroimportøren

Taking into account the latest results, the most recent consensus for Elektroimportøren from lone analyst is for revenues of kr1.48b in 2021 which, if met, would be a modest 5.2% increase on its sales over the past 12 months. Per-share earnings are expected to accumulate 10.0% to kr4.99. In the lead-up to this report, the analyst had been modelling revenues of kr1.42b and earnings per share (EPS) of kr4.75 in 2021. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 16% to kr100.00per share.

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 Elektroimportøren's revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2021 being well below the historical 34% growth over the last year. Compare this to the 5 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 8.2% per year. Factoring in the forecast slowdown in growth, it looks like Elektroimportøren is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Elektroimportøren following these results. They also upgraded their revenue forecasts, although the latest estimates suggest that Elektroimportøren will grow in line with the overall industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

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 Elektroimportøren going out as far as 2022, and you can see them free on our platform here.

Even so, be aware that Elektroimportøren is showing 3 warning signs in our investment analysis , you should know about...

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