Awardit AB (publ) Just Recorded A 31% EPS Beat: Here's What Analysts Are Forecasting Next

Awardit AB (publ) (STO:AWRD) just released its second-quarter report and things are looking bullish. It was overall a positive result, with revenues beating expectations by 3.5% to hit kr194m. Awardit also reported a statutory profit of kr0.92, which was an impressive 31% above what the analysts had forecast. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

Check out our latest analysis for Awardit

Taking into account the latest results, the current consensus from Awardit's twin analysts is for revenues of kr832.1m in 2022, which would reflect a solid 15% increase on its sales over the past 12 months. Statutory earnings per share are predicted to jump 57% to kr3.93. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr832.3m and earnings per share (EPS) of kr2.49 in 2022. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the considerable lift to earnings per share expectations following these results.

The consensus price target was unchanged at kr228, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Awardit'shistorical trends, as the 33% annualised revenue growth to the end of 2022 is roughly in line with the 34% annual revenue growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 17% annually. So it's pretty clear that Awardit is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Awardit's earnings potential next year. Fortunately, they also reconfirmed their revenue numbers, suggesting sales are tracking in line with expectations - and our data suggests that revenues are 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.

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 Awardit going out as far as 2024, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for Awardit that you should be aware of.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.