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

It's been a pretty great week for Cheffelo AB (publ) (STO:CHEF) shareholders, with its shares surging 11% to kr35.00 in the week since its latest full-year results. It looks like a credible result overall - although revenues of kr1.1b were what the analysts expected, Cheffelo surprised by delivering a (statutory) profit of kr2.51 per share, an impressive 26% above what was 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

See our latest analysis for Cheffelo

Following the latest results, Cheffelo's three analysts are now forecasting revenues of kr1.13b in 2025. This would be a reasonable 7.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to surge 21% to kr3.11. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.10b and earnings per share (EPS) of kr2.62 in 2025. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a substantial gain in earnings per share in particular.

It will come as no surprise to learn that the analysts have increased their price target for Cheffelo 17% to kr41.00on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Cheffelo analyst has a price target of kr45.00 per share, while the most pessimistic values it at kr37.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. For example, we noticed that Cheffelo's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.0% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 6.2% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 4.4% per year. So it looks like Cheffelo is expected to grow faster than its competitors, at least for a while.

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 Cheffelo following these results. Happily, they also upgraded their revenue estimates, and are forecasting them 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.

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

You should always think about risks though. Case in point, we've spotted 2 warning signs for Cheffelo 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.