B3 Consulting Group AB (publ) Just Missed Earnings - But Analysts Have Updated Their Models

B3 Consulting Group AB (publ) (STO:B3) shareholders are probably feeling a little disappointed, since its shares fell 9.0% to kr85.50 in the week after its latest full-year results. Revenues of kr1.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at kr7.12, missing estimates by 6.0%. 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. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on B3 Consulting Group after the latest results.

Check out our latest analysis for B3 Consulting Group

Taking into account the latest results, B3 Consulting Group's twin analysts currently expect revenues in 2024 to be kr1.13b, approximately in line with the last 12 months. Per-share earnings are expected to grow 18% to kr8.57. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.15b and earnings per share (EPS) of kr9.36 in 2024. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.

The consensus price target held steady at kr138, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 0.7% by the end of 2024. This indicates a significant reduction from annual growth of 9.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.7% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - B3 Consulting Group is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that B3 Consulting Group'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 in mind, we wouldn't be too quick to come to a conclusion on B3 Consulting Group. Long-term earnings power is much more important than next year's profits. We have analyst estimates for B3 Consulting Group going out as far as 2026, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 3 warning signs for B3 Consulting Group that you should be aware 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.