Earnings Miss: LMK Group AB (publ) Missed EPS By 39% And Analysts Are Revising Their Forecasts
It's been a good week for LMK Group AB (publ) (STO:LMKG) shareholders, because the company has just released its latest full-year results, and the shares gained 3.2% to kr29.00. It looks like a pretty bad result, all things considered. Although revenues of kr1.4b were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 39% to hit kr1.60 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LMK Group after the latest results.
View our latest analysis for LMK Group
Following the latest results, LMK Group's two analysts are now forecasting revenues of kr1.44b in 2022. This would be a credible 3.8% improvement in sales compared to the last 12 months. Per-share earnings are expected to soar 134% to kr3.21. Before this earnings report, the analysts had been forecasting revenues of kr1.47b and earnings per share (EPS) of kr3.49 in 2022. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a minor downgrade to earnings per share estimates.
The consensus price target fell 6.5% to kr93.00, with the weaker earnings outlook clearly leading valuation estimates.
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. We can infer from the latest estimates that forecasts expect a continuation of LMK Group'shistorical trends, as the 3.8% annualised revenue growth to the end of 2022 is roughly in line with the 4.0% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.7% per year. So it's pretty clear that LMK Group is expected to grow slower than similar companies in the same industry.
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. On the negative side, they also downgraded their revenue estimates, and forecasts imply revenues will perform worse than the wider industry. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of LMK Group's future valuation.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for LMK Group going out as far as 2024, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with LMK Group .
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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.
About OM:CHEF
Cheffelo
Engages in the supply and delivery of meal kits to the customer's front door in Sweden, Norway, and Denmark.
Undervalued with reasonable growth potential.