Stock Analysis

Results: RVRC Holding AB (publ) Exceeded Expectations And The Consensus Has Updated Its Estimates

OM:RVRC
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As you might know, RVRC Holding AB (publ) (STO:RVRC) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 8.4% to hit kr392m. RVRC Holding also reported a statutory profit of kr0.82, which was an impressive 21% 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. 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 RVRC Holding

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OM:RVRC Earnings and Revenue Growth February 11th 2022

Following the latest results, RVRC Holding's twin analysts are now forecasting revenues of kr1.34b in 2022. This would be a meaningful 15% improvement in sales compared to the last 12 months. Per-share earnings are expected to swell 16% to kr2.53. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.29b and earnings per share (EPS) of kr2.35 in 2022. So there seems to have been a moderate uplift in sentiment following the latest results, given the upgrades to both revenue and earnings per share forecasts for next year.

Despite these upgrades,the analysts have not made any major changes to their price target of kr109, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that RVRC Holding's revenue growth is expected to slow, with the forecast 32% annualised growth rate until the end of 2022 being well below the historical 88% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.5% annually. Even after the forecast slowdown in growth, it seems obvious that RVRC Holding is also expected to grow faster than the wider industry.

The Bottom Line

The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around RVRC Holding's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting revenues 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.

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. At least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.

We also provide an overview of the RVRC Holding Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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.