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

Last week, you might have seen that Better Collective A/S (STO:BETCO) released its quarterly result to the market. The early response was not positive, with shares down 3.8% to kr138 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%. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

See our latest analysis for Better Collective

Following last week's earnings report, Better Collective's four analysts are forecasting 2024 revenues to be €364.1m, approximately in line with the last 12 months. Statutory earnings per share are expected to shrink 9.8% to €0.38 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €364.1m and earnings per share (EPS) of €0.40 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 kr233, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Better Collective analyst has a price target of kr290 per share, while the most pessimistic values it at kr171. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. 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.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Better Collective's past performance and to peers in the same industry. It's pretty clear that there is an expectation that Better Collective's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 2.0% growth on an annualised basis. This is compared to a historical growth rate of 34% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 15% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Better Collective.

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Better Collective's revenue is expected to perform worse 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Better Collective going out to 2026, and you can see them free on our platform here.

We don't want to rain on the parade too much, but we did also find 5 warning signs for Better Collective (1 is concerning!) that you need to be mindful of.

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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.