Stock Analysis

Results: RVRC Holding AB (publ) Beat Earnings Expectations And Analysts Now Have New Forecasts

OM:RVRC
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Investors in RVRC Holding AB (publ) (STO:RVRC) had a good week, as its shares rose 3.8% to close at kr63.50 following the release of its second-quarter results. RVRC Holding reported kr613m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr1.00 beat expectations, being 8.7% higher than what the analysts expected. 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.

Check out our latest analysis for RVRC Holding

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OM:RVRC Earnings and Revenue Growth February 1st 2024

Taking into account the latest results, the current consensus from RVRC Holding's three analysts is for revenues of kr1.88b in 2024. This would reflect a decent 8.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 14% to kr2.91. Before this earnings report, the analysts had been forecasting revenues of kr1.84b and earnings per share (EPS) of kr2.81 in 2024. So the consensus seems to have become somewhat more optimistic on RVRC Holding's earnings potential following these results.

The consensus price target was unchanged at kr71.67, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on RVRC Holding, with the most bullish analyst valuing it at kr85.00 and the most bearish at kr55.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

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 RVRC Holding's revenue growth is expected to slow, with the forecast 17% annualised growth rate until the end of 2024 being well below the historical 25% p.a. growth over the last three years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 2.7% annually. So it's pretty clear that, while RVRC Holding's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards RVRC Holding following these results. Happily, there were no major changes to revenue forecasts, with the business still 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.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for RVRC Holding going out to 2026, and you can see them free on our platform here..

You can also see our analysis of RVRC Holding's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

Valuation is complex, but we're helping make it simple.

Find out whether RVRC Holding is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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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.