Results: Wilh. Wilhelmsen Holding ASA Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in Wilh. Wilhelmsen Holding ASA (OB:WWI) had a good week, as its shares rose 2.2% to close at kr236 following the release of its quarterly results. It looks like a credible result overall - although revenues of US$232m were what the analysts expected, Wilh. Wilhelmsen Holding surprised by delivering a (statutory) profit of US$2.97 per share, an impressive 173% above what was forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Wilh. Wilhelmsen Holding

Taking into account the latest results, the current consensus from Wilh. Wilhelmsen Holding's dual analysts is for revenues of US$965.5m in 2022, which would reflect a credible 5.7% increase on its sales over the past 12 months. Statutory earnings per share are predicted to shoot up 81% to US$7.67. Before this earnings report, the analysts had been forecasting revenues of US$954.4m and earnings per share (EPS) of US$5.53 in 2022. Although the revenue estimates have not really changed, we can see there's been a great increase in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.6% to kr364.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Wilh. Wilhelmsen Holding's past performance and to peers in the same industry. It's clear from the latest estimates that Wilh. Wilhelmsen Holding's rate of growth is expected to accelerate meaningfully, with the forecast 7.7% annualised revenue growth to the end of 2022 noticeably faster than its historical growth of 4.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.4% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Wilh. Wilhelmsen Holding is expected to grow much faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Wilh. Wilhelmsen Holding's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster 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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

Before you take the next step you should know about the 1 warning sign for Wilh. Wilhelmsen Holding that we have uncovered.

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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.