Globus Maritime Limited Just Recorded A 23% EPS Beat: Here's What Analysts Are Forecasting Next

Globus Maritime Limited (NASDAQ:GLBS) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat both earnings and revenue forecasts, with revenue of US$19m, some 7.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.54, 23% ahead of expectations. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analyst is expecting for next year.

View our latest analysis for Globus Maritime

Taking into account the latest results, the solitary analyst covering Globus Maritime provided consensus estimates of US$59.5m revenue in 2022, which would reflect a definite 14% decline on its sales over the past 12 months. Statutory earnings per share are forecast to tumble 27% to US$1.37 in the same period. In the lead-up to this report, the analyst had been modelling revenues of US$58.2m and earnings per share (EPS) of US$1.27 in 2022. 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.

As a result, it might be a surprise to see thatthe analyst has cut their price target 28% to US$4.50, which could suggest the forecast improvement in performance is not expected to last.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that sales are expected to reverse, with a forecast 26% annualised revenue decline to the end of 2022. That is a notable change from historical growth of 30% over the last five years. Yet aggregate analyst estimates for other companies in the industry suggest that industry revenues are forecast to decline 8.8% per year. So it's pretty clear that Globus Maritime's revenues are expected to shrink 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 Globus Maritime following these results. Fortunately, they also upgraded their revenue estimates, although Globus Maritime'srevenues are still expected to trail the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of Globus Maritime's future valuation.

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 2024, which can be seen for free on our platform here.

However, before you get too enthused, we've discovered 3 warning signs for Globus Maritime (2 make us uncomfortable!) 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.