Cloetta AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

Cloetta AB (publ) (STO:CLA B) came out with its full-year results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. Revenues of kr5.7b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr0.98, missing estimates by 7.9%. 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.

View our latest analysis for Cloetta

Taking into account the latest results, the consensus forecast from Cloetta's two analysts is for revenues of kr5.87b in 2021, which would reflect a modest 3.1% improvement in sales compared to the last 12 months. Per-share earnings are expected to shoot up 53% to kr1.50. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr5.99b and earnings per share (EPS) of kr1.58 in 2021. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

It might be a surprise to learn that the consensus price target was broadly unchanged at kr26.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.

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. Next year brings more of the same, according to the analysts, with revenue forecast to grow 3.1%, in line with its 3.3% annual growth over the past five years. Compare this with the wider industry, which analyst estimates (in aggregate) suggest will see revenues grow 3.5% next year. It's clear that while Cloetta's revenue growth is expected to continue on its current trajectory, it's only expected to grow in line with the industry itself.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr26.00, with the latest estimates not enough to have an impact on their price targets.

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 analyst estimates for Cloetta going out as far as 2023, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Cloetta that you should be aware of.

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This article by Simply Wall St is general in nature. 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.
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