Earnings Miss: Volue ASA Missed EPS By 72% And Analysts Are Revising Their Forecasts

May 07, 2022
Source: Shutterstock

It's been a mediocre week for Volue ASA (OB:VOLUE) shareholders, with the stock dropping 16% to kr34.00 in the week since its latest quarterly results. It looks like a pretty bad result, all things considered. Although revenues of kr286m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 72% to hit kr0.04 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Volue

OB:VOLUE Earnings and Revenue Growth May 6th 2022

Taking into account the latest results, the consensus forecast from Volue's two analysts is for revenues of kr1.23b in 2022, which would reflect a decent 13% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to jump 423% to kr0.73. In the lead-up to this report, the analysts had been modelling revenues of kr1.26b and earnings per share (EPS) of kr0.75 in 2022. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.

The analysts made no major changes to their price target of kr52.50, suggesting the downgrades are not expected to have a long-term impact on Volue's valuation.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Volue's past performance and to peers in the same industry. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 18% growth on an annualised basis. That is in line with its 18% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 22% per year. So it's pretty clear that Volue is expected to grow slower than similar companies in the same industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target held steady at kr52.50, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have analyst estimates for Volue going out as far as 2024, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 2 warning signs for Volue that you need to be mindful of.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.