Stock Analysis

Cheffelo AB (publ) (STO:CHEF) Just Released Its Third-Quarter Results And Analysts Are Updating Their Estimates

OM:CHEF
Source: Shutterstock

Shareholders might have noticed that Cheffelo AB (publ) (STO:CHEF) filed its quarterly result this time last week. The early response was not positive, with shares down 5.4% to kr24.40 in the past week. It was a pretty bad result overall; while revenues were in line with expectations at kr216m, statutory losses exploded to kr0.96 per share. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Cheffelo after the latest results.

See our latest analysis for Cheffelo

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OM:CHEF Earnings and Revenue Growth November 8th 2024

Taking into account the latest results, the current consensus from Cheffelo's dual analysts is for revenues of kr1.11b in 2025. This would reflect a modest 7.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 41% to kr2.69. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.12b and earnings per share (EPS) of kr2.68 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

The analysts reconfirmed their price target of kr35.00, showing that the business is executing well and in line with expectations.

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. One thing stands out from these estimates, which is that Cheffelo is forecast to grow faster in the future than it has in the past, with revenues expected to display 5.9% annualised growth until the end of 2025. If achieved, this would be a much better result than the 6.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 2.2% annually. So it looks like Cheffelo is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue 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.

With that in mind, we wouldn't be too quick to come to a conclusion on Cheffelo. Long-term earnings power is much more important than next year's profits. We have analyst estimates for Cheffelo going out as far as 2026, 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.