Party Time: One Broker Just Made Major Increases To Their Klaveness Combination Carriers ASA (OB:KCC) Earnings Forecast

Klaveness Combination Carriers ASA (OB:KCC) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. Klaveness Combination Carriers has also found favour with investors, with the stock up an impressive 10% to kr76.60 over the past week. We'll be curious to see if these new estimates convince the market to lift the stock price higher still.

Following the latest upgrade, the current consensus, from the single analyst covering Klaveness Combination Carriers, is for revenues of US$211m in 2023, which would reflect an uneasy 14% reduction in Klaveness Combination Carriers' sales over the past 12 months. Per-share earnings are expected to jump 56% to US$1.81. Before this latest update, the analyst had been forecasting revenues of US$166m and earnings per share (EPS) of US$0.97 in 2023. 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

With these upgrades, we're not surprised to see that the analyst has lifted their price target 18% to US$13.39 per share.

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. We would highlight that sales are expected to reverse, with a forecast 11% annualised revenue decline to the end of 2023. That is a notable change from historical growth of 23% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.7% per year. The forecasts do look bearish for Klaveness Combination Carriers, since they're expecting it to shrink faster than the industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for next year, expecting improving business conditions. They also upgraded their revenue estimates, with sales apparently performing well even though revenue growth expected to decline against the wider market next year. 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

You can also see our analysis of Klaveness Combination Carriers' 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.