Analysts' Revenue Estimates For Europris ASA (OB:EPR) Are Surging Higher

Europris ASA (OB:EPR) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's statutory forecasts. The consensus estimated revenue numbers rose, with their view now clearly much more bullish on the company's business prospects.

Following the upgrade, the current consensus from Europris' four analysts is for revenues of kr13b in 2024 which - if met - would reflect a sizeable 23% increase on its sales over the past 12 months. Statutory earnings per share are supposed to reduce 6.4% to kr5.10 in the same period. Previously, the analysts had been modelling revenues of kr9.9b and earnings per share (EPS) of kr5.07 in 2024. There's clearly been a surge in bullishness around the company's sales pipeline, even if there's no real change in earnings per share forecasts.

See our latest analysis for Europris

It may not be a surprise to see that the analysts have reconfirmed their price target of kr80.33, implying that the uplift in sales is not expected to greatly contribute to Europris's valuation in the near term.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's clear from the latest estimates that Europris' rate of growth is expected to accelerate meaningfully, with the forecast 51% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 9.5% p.a. 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 10% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Europris is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion from this consensus update is that there's been no major change in the business' prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Seeing the dramatic upgrade to this year's forecasts, it might be time to take another look at Europris.

Still, the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Europris analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Europris' Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.

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