Pexip Holding ASA Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year

Pexip Holding ASA (OB:PEXIP) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat forecasts, with revenue of kr266m, some 6.1% above estimates, and statutory earnings per share (EPS) coming in at kr0.50, 1,235% ahead of expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Pexip Holding

Taking into account the latest results, the consensus forecast from Pexip Holding's two analysts is for revenues of kr1.10b in 2024. This reflects an okay 4.1% improvement in revenue compared to the last 12 months. Pexip Holding is also expected to turn profitable, with statutory earnings of kr0.98 per share. Before this earnings report, the analysts had been forecasting revenues of kr1.09b and earnings per share (EPS) of kr0.96 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 7.6% to kr35.50. It looks as though they previously had some doubts over whether the business would live up to their expectations.

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 8.3% 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 15% annually. 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for Pexip Holding going out as far as 2026, and you can see them free on our platform here.

You can also see our analysis of Pexip Holding's 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.