New Wave Group AB (publ) Beat Revenue Forecasts By 6.1%: Here's What Analysts Are Forecasting Next

As you might know, New Wave Group AB (publ) (STO:NEWA B) recently reported its quarterly numbers. New Wave Group beat revenue expectations by 6.1%, at kr2.4b. Statutory earnings per share (EPS) came in at kr1.59, some 3.4% short of analyst estimates. 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.

Check out our latest analysis for New Wave Group

Taking into account the latest results, the consensus forecast from New Wave Group's three analysts is for revenues of kr9.79b in 2024. This reflects a modest 3.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 2.6% to kr7.49. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr9.70b and earnings per share (EPS) of kr7.98 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.

Despite cutting their earnings forecasts,the analysts have lifted their price target 6.6% to kr135, suggesting that these impacts are not expected to weigh on the stock's value in the long term. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic New Wave Group analyst has a price target of kr140 per share, while the most pessimistic values it at kr130. 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.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that New Wave Group's revenue growth is expected to slow, with the forecast 7.0% annualised growth rate until the end of 2024 being well below the historical 10.0% 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) 7.6% annually. So it's pretty clear that, while New Wave Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for New Wave Group. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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 New Wave Group going out to 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 1 warning sign for New Wave Group that you should be aware of.

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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.