Fortnox AB (publ) Just Beat EPS By 10%: Here's What Analysts Think Will Happen Next

It's been a pretty great week for Fortnox AB (publ) (STO:FNOX) shareholders, with its shares surging 14% to kr71.92 in the week since its latest full-year results. Revenues were kr1.6b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of kr0.93 were also better than expected, beating analyst predictions by 10%. 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. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Fortnox

Taking into account the latest results, the current consensus from Fortnox's seven analysts is for revenues of kr2.08b in 2024. This would reflect a major 27% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 19% to kr1.12. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr2.05b and earnings per share (EPS) of kr1.09 in 2024. So the consensus seems to have become somewhat more optimistic on Fortnox's earnings potential following these results.

The consensus price target was unchanged at kr58.17, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Fortnox at kr75.00 per share, while the most bearish prices it at kr34.00. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

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. We can infer from the latest estimates that forecasts expect a continuation of Fortnox'shistorical trends, as the 27% annualised revenue growth to the end of 2024 is roughly in line with the 28% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 14% per year. So it's pretty clear that Fortnox is forecast to grow substantially faster than its industry.

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 Fortnox following these results. 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. The consensus price target held steady at kr58.17, with the latest estimates not enough to have an impact on their price targets.

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 estimates - from multiple Fortnox analysts - going out to 2026, and you can see them free on our platform here.

You can also see our analysis of Fortnox's Board and CEO remuneration and experience, and whether company insiders have been buying stock.

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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.