Earnings Beat: Cheffelo AB (publ) Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Shareholders will be ecstatic, with their stake up 31% over the past week following Cheffelo AB (publ)'s (STO:CHEF) latest yearly results. Revenues were kr1.0b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr1.52, an impressive 36% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Cheffelo

After the latest results, the dual analysts covering Cheffelo are now predicting revenues of kr1.06b in 2024. If met, this would reflect a satisfactory 5.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 40% to kr2.13. In the lead-up to this report, the analysts had been modelling revenues of kr1.05b and earnings per share (EPS) of kr1.37 in 2024. Although the revenue estimates have not really changed, we can see there's been a sizeable expansion in earnings per share expectations, suggesting that the analysts have become more bullish after the latest result.

The consensus price target rose 28% to kr23.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Cheffelo's past performance and to peers in the same industry. 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 5.8% annualised growth until the end of 2024. If achieved, this would be a much better result than the 5.6% 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 1.8% annually. 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. 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

We don't want to rain on the parade too much, but we did also find 1 warning sign for Cheffelo that you need to be mindful of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.