Better Collective A/S (STO:BETCO) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

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 4.3% to kr140 in the past week. Results overall were respectable, with statutory earnings of €0.33 per share roughly in line with what the analysts had forecast. Revenues of €56m came in 4.1% ahead of analyst predictions. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Check out our latest analysis for Better Collective

Following the latest results, Better Collective's dual analysts are now forecasting revenues of €261.3m in 2022. This would be a meaningful 18% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to surge 92% to €0.99. Yet prior to the latest earnings, the analysts had been anticipated revenues of €259.3m and earnings per share (EPS) of €1.01 in 2022. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of kr245, suggesting that the company has met expectations in its recent result.

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 would highlight that Better Collective's revenue growth is expected to slow, with the forecast 39% annualised growth rate until the end of 2022 being well below the historical 49% 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) 19% per year. Even after the forecast slowdown in growth, it seems obvious that Better Collective is also expected to grow faster than the wider industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. 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. The consensus price target held steady at kr245, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

You should always think about risks though. Case in point, we've spotted 2 warning signs for Better Collective you should be aware of, and 1 of them can't be ignored.

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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.