Wilh. Wilhelmsen Holding ASA Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

Wilh. Wilhelmsen Holding ASA (OB:WWI) shareholders are probably feeling a little disappointed, since its shares fell 5.1% to kr372 in the week after its latest full-year results. Wilh. Wilhelmsen Holding reported US$1.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$10.52 beat expectations, being 7.0% higher than what the analysts expected. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for Wilh. Wilhelmsen Holding

Following last week's earnings report, Wilh. Wilhelmsen Holding's two analysts are forecasting 2024 revenues to be US$1.01b, approximately in line with the last 12 months. Statutory earnings per share are expected to crater 35% to US$6.82 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$1.08b and earnings per share (EPS) of US$8.23 in 2024. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a real cut to earnings per share estimates.

What's most unexpected is that the consensus price target rose 19% to kr497, strongly implying the downgrade to forecasts is not expected to be more than a temporary blip.

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. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 1.9% by the end of 2024. This indicates a significant reduction from annual growth of 4.1% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 1.3% per year. So it's pretty clear that Wilh. Wilhelmsen Holding's revenues are expected to shrink faster than the wider 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. Unfortunately they also cut their revenue estimates for next year. Forecasts imply the business' revenue is expected to perform worse than the wider industry. That said, earnings per share are more important for creating value for shareholders. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for Wilh. Wilhelmsen Holding going out as far as 2026, and you can see them free on our platform here.

Plus, you should also learn about the 1 warning sign we've spotted with Wilh. Wilhelmsen Holding .

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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.