Coor Service Management Holding AB Just Missed Earnings - But Analysts Have Updated Their Models

It's been a good week for Coor Service Management Holding AB (STO:COOR) shareholders, because the company has just released its latest first-quarter results, and the shares gained 6.1% to kr51.20. Revenues were in line with forecasts, at kr3.1b, although statutory earnings per share came in 18% below what the analysts expected, at kr0.70 per share. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Coor Service Management Holding

Taking into account the latest results, the most recent consensus for Coor Service Management Holding from four analysts is for revenues of kr12.9b in 2024. If met, it would imply a modest 2.4% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 104% to kr3.48. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr12.8b and earnings per share (EPS) of kr3.35 in 2024. So the consensus seems to have become somewhat more optimistic on Coor Service Management Holding's earnings potential following these results.

There's been no major changes to the consensus price target of kr60.38, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock'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. The most optimistic Coor Service Management Holding analyst has a price target of kr62.50 per share, while the most pessimistic values it at kr58.00. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Coor Service Management Holding's revenue growth is expected to slow, with the forecast 3.3% annualised growth rate until the end of 2024 being well below the historical 5.3% p.a. growth over the last five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 3.9% annually. So it's pretty clear that, while Coor Service Management Holding's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Coor Service Management Holding's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Coor Service Management Holding analysts - going out to 2026, and you can see them free on our platform here.

Plus, you should also learn about the 4 warning signs we've spotted with Coor Service Management 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.