Better Collective A/S Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now

Shareholders might have noticed that Better Collective A/S (STO:BETCO) filed its second-quarter result this time last week. The early response was not positive, with shares down 2.7% to kr235 in the past week. Revenues of €99m were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at €0.16, missing estimates by 5.9%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Better Collective

After the latest results, the four analysts covering Better Collective are now predicting revenues of €410.1m in 2024. If met, this would reflect a meaningful 16% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 79% to €0.81. In the lead-up to this report, the analysts had been modelling revenues of €409.5m and earnings per share (EPS) of €0.87 in 2024. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

The consensus price target held steady at kr364, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Better Collective analyst has a price target of kr401 per share, while the most pessimistic values it at kr328. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Better Collective'shistorical trends, as the 34% annualised revenue growth to the end of 2024 is roughly in line with the 36% annual growth over the past five 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 Better Collective is forecast to grow substantially faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Better Collective. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr364, with the latest estimates not enough to have an impact on their price targets.

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 forecasts for Better Collective going out to 2026, and you can see them free on our platform here.

It is also worth noting that we have found 3 warning signs for Better Collective (1 is a bit unpleasant!) that you need to take into consideration.

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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.