Earnings Miss: Coor Service Management Holding AB Missed EPS By 13% And Analysts Are Revising Their Forecasts

As you might know, Coor Service Management Holding AB (STO:COOR) recently reported its full-year numbers. It was not a great result overall. While revenues of kr12b were in line with analyst predictions, earnings were less than expected, missing statutory estimates by 13% to hit kr1.64 per share. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Coor Service Management Holding

Taking into account the latest results, the consensus forecast from Coor Service Management Holding's three analysts is for revenues of kr12.9b in 2024. This reflects a reasonable 4.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to jump 109% to kr3.42. Before this earnings report, the analysts had been forecasting revenues of kr12.8b and earnings per share (EPS) of kr3.34 in 2024. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The average the analysts price target fell 16% to kr57.33, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Coor Service Management Holding analyst has a price target of kr62.00 per share, while the most pessimistic values it at kr54.00. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 4.0% growth on an annualised basis. That is in line with its 5.0% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 4.2% annually. So although Coor Service Management Holding is expected to maintain its revenue growth rate, it's only growing at about the rate of 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 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. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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 forecasts for Coor Service Management Holding going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Coor Service Management Holding (1 makes us a bit uncomfortable!) that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.