Earnings Beat: Nimbus Group AB (Publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Last week, you might have seen that Nimbus Group AB (Publ) (STO:BOAT) released its annual result to the market. The early response was not positive, with shares down 7.2% to kr59.85 in the past week. It looks to have been a decent result overall - while revenue fell marginally short of analyst estimates at kr1.5b, statutory earnings beat expectations by a notable 10%, coming in at kr7.09 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

Check out our latest analysis for Nimbus Group

Taking into account the latest results, the consensus forecast from Nimbus Group's twin analysts is for revenues of kr1.84b in 2022, which would reflect a huge 26% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to grow 20% to kr8.22. Before this earnings report, the analysts had been forecasting revenues of kr1.74b and earnings per share (EPS) of kr7.42 in 2022. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a nice gain to earnings per share in particular.

Despite these upgrades,the analysts have not made any major changes to their price target of kr92.00, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

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. The period to the end of 2022 brings more of the same, according to the analysts, with revenue forecast to display 26% growth on an annualised basis. That is in line with its 28% annual growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 10% per year. So it's pretty clear that Nimbus Group is forecast to grow substantially 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 Nimbus Group following these results. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than 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 analyst estimates for Nimbus Group going out as far as 2024, and you can see them free on our platform here.

Even so, be aware that Nimbus Group is showing 1 warning sign in our investment analysis , 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.