Results: Wallenius Wilhelmsen ASA Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, Wallenius Wilhelmsen ASA (OB:WAWI) just kicked off its latest second-quarter results with some very strong numbers. The company beat forecasts, with revenue of US$1.4b, some 3.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.69, 22% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Wallenius Wilhelmsen

Taking into account the latest results, the most recent consensus for Wallenius Wilhelmsen from four analysts is for revenues of US$5.39b in 2024. If met, it would imply an okay 3.6% increase on its revenue over the past 12 months. Per-share earnings are expected to shoot up 33% to US$2.76. Before this earnings report, the analysts had been forecasting revenues of US$5.26b and earnings per share (EPS) of US$2.40 in 2024. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice increase in earnings per share in particular.

Althoughthe analysts have upgraded their earnings estimates, there was no change to the consensus price target of kr148, suggesting that the forecast performance does not have a long term impact on the company's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Wallenius Wilhelmsen at kr159 per share, while the most bearish prices it at kr139. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wallenius Wilhelmsen's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Wallenius Wilhelmsen'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 9.9% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 0.3% annually. Even after the forecast slowdown in growth, it seems obvious that Wallenius Wilhelmsen is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Wallenius Wilhelmsen's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at kr148, with the latest estimates not enough to have an impact on their price targets.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Wallenius Wilhelmsen going out to 2026, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Wallenius Wilhelmsen that you should be aware of.

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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.