Komplett ASA (OB:KOMPL) Analysts Just Slashed This Year's Revenue Estimates By 20%

The latest analyst coverage could presage a bad day for Komplett ASA (OB:KOMPL), with the analysts making across-the-board cuts to their statutory estimates that might leave shareholders a little shell-shocked. There was a fairly draconian cut to their revenue estimates, perhaps an implicit admission that previous forecasts were much too optimistic.

After this downgrade, Komplett's two analysts are now forecasting revenues of kr12b in 2022. This would be a reasonable 4.9% improvement in sales compared to the last 12 months. Statutory earnings per share are presumed to increase 5.4% to kr4.38. Previously, the analysts had been modelling revenues of kr15b and earnings per share (EPS) of kr4.37 in 2022. Indeed we can see that the consensus opinion has undergone some fundamental changes following the recent consensus updates, with a sizeable cut to revenues and some minor tweaks to earnings numbers.

Check out our latest analysis for Komplett

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 pretty clear that there is an expectation that Komplett's revenue growth will slow down substantially, with revenues to the end of 2022 expected to display 4.9% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past three years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 22% 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 Komplett.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Komplett after today.

After a downgrade like this, it's pretty clear that previous forecasts were too optimistic. What's more, we've spotted several possible issues with Komplett's business, like concerns around earnings quality. Learn more, and discover the 2 other concerns we've identified, for free on our platform here.

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