Earnings Miss: B3 Consulting Group AB (publ) Missed EPS By 39% And Analysts Are Revising Their Forecasts

It's been a good week for B3 Consulting Group AB (publ) (STO:B3) shareholders, because the company has just released its latest second-quarter results, and the shares gained 8.3% to kr88.90. It looks like a pretty bad result, all things considered. Although revenues of kr266m were in line with analyst predictions, statutory earnings fell badly short, missing estimates by 39% to hit kr0.62 per share. 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.

View our latest analysis for B3 Consulting Group

Taking into account the latest results, the current consensus from B3 Consulting Group's dual analysts is for revenues of kr1.17b in 2024. This would reflect a solid 9.5% increase on its revenue over the past 12 months. Per-share earnings are expected to swell 11% to kr3.71. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr1.15b and earnings per share (EPS) of kr4.90 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 8.2% to kr132, suggesting the revised estimates are not indicative of a weaker long-term future for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting B3 Consulting Group's growth to accelerate, with the forecast 20% annualised growth to the end of 2024 ranking favourably alongside historical growth of 8.5% 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 2.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that B3 Consulting Group is expected to grow much faster than its industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for B3 Consulting Group. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for B3 Consulting Group going out as far as 2026, and you can see them free on our platform here.

You should always think about risks though. Case in point, we've spotted 4 warning signs for B3 Consulting Group you should be aware of, and 2 of them don't sit too well with us.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com