Analysts Have Made A Financial Statement On Komplett ASA's (OB:KOMPL) Second-Quarter Report

Shareholders of Komplett ASA (OB:KOMPL) will be pleased this week, given that the stock price is up 13% to kr9.58 following its latest quarterly results. Revenues were in line with expectations, at kr3.4b, while statutory losses ballooned to kr0.38 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Komplett after the latest results.

View our latest analysis for Komplett

After the latest results, the three analysts covering Komplett are now predicting revenues of kr15.6b in 2024. If met, this would reflect a reasonable 4.4% improvement in revenue compared to the last 12 months. Statutory losses are forecast to balloon 96% to kr0.24 per share. Before this earnings report, the analysts had been forecasting revenues of kr16.0b and earnings per share (EPS) of kr0.10 in 2024. There looks to have been a significant drop in sentiment regarding Komplett's prospects after these latest results, with a small dip in revenues and the analysts now forecasting a loss instead of a profit.

The average price target was broadly unchanged at kr10.25, perhaps implicitly signalling that the weaker earnings outlook is not expected to have a long-term impact on the valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Komplett, with the most bullish analyst valuing it at kr12.00 and the most bearish at kr8.50 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 Komplett's revenue growth is expected to slow, with the forecast 8.9% annualised growth rate until the end of 2024 being well below the historical 14% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.4% per year. So it's pretty clear that, while Komplett's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing to take away is that the analysts are expecting Komplett to become unprofitable next year. They also downgraded Komplett's revenue estimates, but industry data suggests that it is expected to grow faster 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 Simply Wall St, we have a full range of analyst estimates for Komplett going out to 2026, and you can see them free on our platform here..

You can also see whether Komplett is carrying too much debt, and whether its balance sheet is healthy, for free on our platform 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com