Results: Cheffelo AB (publ) Beat Earnings Expectations And Analysts Now Have New Forecasts

Shareholders of Cheffelo AB (publ) (STO:CHEF) will be pleased this week, given that the stock price is up 13% to kr55.80 following its latest interim results. The result was positive overall - although revenues of kr262m were in line with what the analysts predicted, Cheffelo surprised by delivering a statutory profit of kr1.34 per share, modestly greater than expected. 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 thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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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 credible 3.6% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to increase 6.9% to kr3.74. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.15b and earnings per share (EPS) of kr3.60 in 2025. So the consensus seems to have become somewhat more optimistic on Cheffelo's earnings potential following these results.

View our latest analysis for Cheffelo

There's been no major changes to the consensus price target of kr60.00, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. 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. There are some variant perceptions on Cheffelo, with the most bullish analyst valuing it at kr63.00 and the most bearish at kr54.00 per share. This is a very narrow spread of estimates, implying either that Cheffelo is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.

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. For example, we noticed that Cheffelo's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 7.3% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 1.6% 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 1.6% per year. So it looks like Cheffelo is expected to grow faster than its competitors, at least for a while.

The Bottom Line

The 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. 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.

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.

That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 3 warning signs with Cheffelo , and understanding them should be part of your investment process.

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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.