Earnings Beat: Pexip Holding ASA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Pexip Holding ASA (OB:PEXIP) just released its quarterly report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 5.6% to hit kr292m. Pexip Holding also reported a statutory profit of kr0.44, which was an impressive 80% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Pexip Holding after the latest results.

View our latest analysis for Pexip Holding

Following the latest results, Pexip Holding's two analysts are now forecasting revenues of kr1.08b in 2024. This would be a reasonable 5.4% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Pexip Holding forecast to report a statutory profit of kr0.82 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.08b and earnings per share (EPS) of kr0.73 in 2024. Although the revenue estimates have not really changed, we can see there's been a nice increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 17% to kr35.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

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. It's pretty clear that there is an expectation that Pexip Holding's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 7.3% growth on an annualised basis. This is compared to a historical growth rate of 12% over the past three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 16% per year. Factoring in the forecast slowdown in growth, it seems obvious that Pexip Holding is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Pexip Holding following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pexip Holding's revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 Pexip Holding going out as far as 2026, and you can see them free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months 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.