B3 Consulting Group AB (publ) Just Beat EPS By 5.6%: Here's What Analysts Think Will Happen Next

It's been a good week for B3 Consulting Group AB (publ) (STO:B3) shareholders, because the company has just released its latest yearly results, and the shares gained 7.2% to kr185. B3 Consulting Group reported kr1.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr11.79 beat expectations, being 5.6% higher than what the analyst expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is 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 estimate to see what could be in store for next year.

View our latest analysis for B3 Consulting Group

After the latest results, the single analyst covering B3 Consulting Group are now predicting revenues of kr1.30b in 2023. If met, this would reflect a decent 13% improvement in sales compared to the last 12 months. Statutory per share are forecast to be kr11.78, approximately in line with the last 12 months. Before this earnings report, the analyst had been forecasting revenues of kr1.27b and earnings per share (EPS) of kr11.35 in 2023. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analyst has lifted their price target 11% to kr240per share.

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. The analyst is definitely expecting B3 Consulting Group's growth to accelerate, with the forecast 13% annualised growth to the end of 2023 ranking favourably alongside historical growth of 9.8% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 9.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analyst also expect B3 Consulting Group to grow faster than the wider industry.

The Bottom Line

The most important thing here is that the analyst upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards B3 Consulting Group following these results. Happily, they also upgraded their revenue estimates, and are forecasting revenues to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.

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 2025, which can be seen for free on our platform here.

Even so, be aware that B3 Consulting Group is showing 3 warning signs in our investment analysis , you should know about...

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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.