As you might know, Green Landscaping Group AB (publ) (STO:GREEN) last week released its latest quarterly, and things did not turn out so great for shareholders. Revenues fell 8.2% short of expectations, at kr492m. Earnings correspondingly dipped, with Green Landscaping Group reporting a loss of kr0.19 per share, whereas analysts had previously modelled a profit in this period. Earnings are an important time for investors, as they can track a company’s performance, look at what top analysts are forecasting for next year, and see if there’s been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what analysts are forecasting for next year.
Taking into account the latest results, the latest consensus from Green Landscaping Group’s lone analyst is for revenues of kr2.3b in 2020, which would reflect a huge 24% improvement in sales compared to the last 12 months. Earnings are expected to improve, with Green Landscaping Group forecast to report a profit of kr2.48 per share. Yet prior to the latest earnings, analysts had been forecasting revenues of kr2.3b and earnings per share (EPS) of kr2.51 in 2020. The consensus analysts don’t seem to have seen anything in these results that would have changed their view on the business, given there’s been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr46.00.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. Analysts are definitely expecting Green Landscaping Group’s growth to accelerate, with the forecast 24% growth ranking favourably alongside historical growth of 18% per annum over the past five years. Compare this with other companies in the same market, which are forecast to grow their revenue 7.0% next year. Factoring in the forecast acceleration in revenue, it’s pretty clear that Green Landscaping Group is expected to grow much faster than its market.
The Bottom Line
The most obvious conclusion from these results is that there’s been no major change in the business’ prospects in recent times, with analysts holding earnings per share steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with analysts still expecting the business to grow faster than the wider market. The consensus price target held steady at kr46.00, with the latest estimates not enough to have an impact on analysts’ estimated valuations.
Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. At least one analyst has provided forecasts out to 2021, which can be seen for free on our platform here.
You can also see whether Green Landscaping Group is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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