kr51.00 - That's What Analysts Think Viva Wine Group AB (STO:VIVA) Is Worth After These Results

Investors in Viva Wine Group AB (STO:VIVA) had a good week, as its shares rose 2.5% to close at kr44.60 following the release of its quarterly results. It was a pretty mixed result, with revenues beating expectations to hit kr1.1b. Statutory earnings fell 2.6% short of analyst forecasts, reaching kr0.38 per share. The analyst 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.

See our latest analysis for Viva Wine Group

Taking into account the latest results, the current consensus from Viva Wine Group's one analyst is for revenues of kr4.18b in 2024. This would reflect a modest 2.6% increase on its revenue over the past 12 months. Per-share earnings are expected to jump 56% to kr1.95. Before this earnings report, the analyst had been forecasting revenues of kr4.13b and earnings per share (EPS) of kr1.91 in 2024. The analyst seem to have become more bullish on the business, judging by their new earnings per share estimates.

The consensus price target rose 9.2% to kr51.00, suggesting that higher earnings estimates flow through to the stock's valuation as well.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Viva Wine Group's revenue growth is expected to slow, with the forecast 5.2% annualised growth rate until the end of 2024 being well below the historical 7.9% p.a. growth over the last three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 4.5% annually. Factoring in the forecast slowdown in growth, it looks like Viva Wine Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Viva Wine Group's earnings potential next year. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. We note an upgrade to the price target, suggesting that the analyst believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.

And what about risks? Every company has them, and we've spotted 2 warning signs for Viva Wine Group you should know about.

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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.