Just In: One Analyst Has Become A Lot More Bullish On Klaveness Combination Carriers ASA's (OB:KCC) Earnings

Celebrations may be in order for Klaveness Combination Carriers ASA (OB:KCC) shareholders, with the covering analyst delivering a significant upgrade to their statutory estimates for the company. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The market seems to be pricing in some improvement in the business too, with the stock up 4.6% over the past week, closing at kr59.00. Could this big upgrade push the stock even higher?

After the upgrade, the consensus from Klaveness Combination Carriers' one analyst is for revenues of US$135m in 2022, which would reflect a disturbing 32% decline in sales compared to the last year of performance. Statutory earnings per share are presumed to soar 71% to US$0.74. Prior to this update, the analyst had been forecasting revenues of US$118m and earnings per share (EPS) of US$0.42 in 2022. So we can see there's been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

Check out our latest analysis for Klaveness Combination Carriers

It will come as no surprise to learn that the analyst has increased their price target for Klaveness Combination Carriers 5.0% to US$8.95 on the back of these upgrades.

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. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 32% by the end of 2022. This indicates a significant reduction from annual growth of 18% over the last three years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.6% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Klaveness Combination Carriers is expected to lag the wider industry.

The Bottom Line

The biggest takeaway for us from these new estimates is that the analyst upgraded their earnings per share estimates, with improved earnings power expected for this year. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, Klaveness Combination Carriers could be worth investigating further.

The covering analyst is clearly in love with Klaveness Combination Carriers at the moment, but before diving in - you should be aware that we've identified some warning flags with the business, such as dilutive stock issuance over the past year. You can learn more, and discover the 3 other concerns we've identified, for free on our platform here.

Another way to search for interesting companies that could be reaching an inflection point is to track whether management are buying or selling, with our free list of growing companies that insiders are buying.

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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.