Cheffelo AB (publ) Just Beat EPS By 24%: Here's What Analysts Think Will Happen Next

As you might know, Cheffelo AB (publ) (STO:CHEF) just kicked off its latest first-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 6.0% to hit kr336m. Cheffelo also reported a statutory profit of kr1.24, which was an impressive 24% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Cheffelo's three analysts is for revenues of kr1.15b in 2025. This reflects a satisfactory 4.2% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 7.7% to kr3.60. Before this earnings report, the analysts had been forecasting revenues of kr1.14b and earnings per share (EPS) of kr3.19 in 2025. Although the revenue estimates have not really changed, we can see there's been a solid gain to earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

See our latest analysis for Cheffelo

The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 9.0% to kr52.67. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Cheffelo analyst has a price target of kr62.00 per share, while the most pessimistic values it at kr47.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Cheffelo is an easy business to forecast or the the analysts are all using similar assumptions.

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. For example, we noticed that Cheffelo's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 5.6% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 5.5% a year over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 2.6% per year. So it looks like Cheffelo is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Cheffelo's earnings potential next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider 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.

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 Cheffelo analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Cheffelo has 3 warning signs we think 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.