Results: BYGGFAKTA GROUP Nordic HoldCo AB (publ) Beat Earnings Expectations And Analysts Now Have New Forecasts

BYGGFAKTA GROUP Nordic HoldCo AB (publ) (STO:BFG) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The company beat both earnings and revenue forecasts, with revenue of kr553m, some 3.6% above estimates, and statutory earnings per share (EPS) coming in at kr0.21, 45% ahead of expectations. 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

View our latest analysis for BYGGFAKTA GROUP Nordic HoldCo

Taking into account the latest results, the most recent consensus for BYGGFAKTA GROUP Nordic HoldCo from four analysts is for revenues of kr2.17b in 2022 which, if met, would be a reasonable 6.5% increase on its sales over the past 12 months. BYGGFAKTA GROUP Nordic HoldCo is also expected to turn profitable, with statutory earnings of kr0.62 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.16b and earnings per share (EPS) of kr0.60 in 2022. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

The average the analysts price target fell 8.3% to kr52.80, suggesting thatthe analysts have other concerns, and the improved earnings per share outlook was not enough to allay them. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values BYGGFAKTA GROUP Nordic HoldCo at kr61.00 per share, while the most bearish prices it at kr45.00. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the BYGGFAKTA GROUP Nordic HoldCo's past performance and to peers in the same industry. We would highlight that BYGGFAKTA GROUP Nordic HoldCo's revenue growth is expected to slow, with the forecast 13% annualised growth rate until the end of 2022 being well below the historical 96% 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 22% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than BYGGFAKTA GROUP Nordic HoldCo.

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 BYGGFAKTA GROUP Nordic HoldCo following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that BYGGFAKTA GROUP Nordic HoldCo's revenues are expected to perform worse than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

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. We have forecasts for BYGGFAKTA GROUP Nordic HoldCo going out to 2024, and you can see them free on our platform here.

You can also view our analysis of BYGGFAKTA GROUP Nordic HoldCo's balance sheet, and whether we think BYGGFAKTA GROUP Nordic HoldCo is carrying too much debt, for free on our platform here.

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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.