Here's What Analysts Are Forecasting For Jastrzebska Spólka Weglowa S.A. (WSE:JSW) After Its First-Quarter Results

Investors in Jastrzebska Spólka Weglowa S.A. (WSE:JSW) had a good week, as its shares rose 4.0% to close at zł70.00 following the release of its quarterly results. Results were roughly in line with estimates, with revenues of zł4.9b and statutory earnings per share of zł7.70. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. 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 Jastrzebska Spólka Weglowa

Taking into account the latest results, the consensus forecast from Jastrzebska Spólka Weglowa's four analysts is for revenues of zł16.5b in 2022, which would reflect a sizeable 22% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to soar 180% to zł70.02. Yet prior to the latest earnings, the analysts had been anticipated revenues of zł18.6b and earnings per share (EPS) of zł44.17 in 2022. There's been a definite change in sentiment after these results, with the analysts delivering a to next year's revenue estimates, while at the same time substantially upgrading EPS. It's almost as though the business is anticipated to reduce its focus on growth to enhance profitability.

There's been no real change to the average price target of zł84.61, with the lower revenue and higher earnings forecasts not expected to meaningfully impact the company's valuation over a longer timeframe. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Jastrzebska Spólka Weglowa analyst has a price target of zł100.00 per share, while the most pessimistic values it at zł59.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Jastrzebska Spólka Weglowa shareholders.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Jastrzebska Spólka Weglowa's past performance and to peers in the same industry. The analysts are definitely expecting Jastrzebska Spólka Weglowa's growth to accelerate, with the forecast 30% annualised growth to the end of 2022 ranking favourably alongside historical growth of 1.4% per annum 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 0.3% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Jastrzebska Spólka Weglowa is expected to grow much faster than its industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Jastrzebska Spólka Weglowa following these results. They also downgraded their revenue estimates, although industry data suggests that Jastrzebska Spólka Weglowa's revenues are expected to grow faster than the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target held steady at zł84.61, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Jastrzebska Spólka Weglowa. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Jastrzebska Spólka Weglowa analysts - going out to 2024, and you can see them free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Jastrzebska Spólka Weglowa (of which 1 shouldn't be ignored!) you should know about.

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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.