Netcompany Group A/S (CPH:NETC) came out with its half-yearly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. It was a pretty mixed result, with revenues beating expectations to hit kr.4.9b. Statutory earnings fell 4.1% short of analyst forecasts, reaching kr.4.31 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Netcompany Group's eight analysts are now forecasting revenues of kr.9.56b in 2026. This would be an okay 2.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to jump 79% to kr.16.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.9.49b and earnings per share (EPS) of kr.18.84 in 2026. So there's definitely been a decline in sentiment after the latest results, noting the real cut to new EPS forecasts.
View our latest analysis for Netcompany Group
It might be a surprise to learn that the consensus price target was broadly unchanged at kr.381, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Netcompany Group analyst has a price target of kr.435 per share, while the most pessimistic values it at kr.309. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that Netcompany Group's revenue growth is expected to slow, with the forecast 5.7% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.0% per year. Factoring in the forecast slowdown in growth, it seems obvious that Netcompany Group is also expected to grow slower than other industry participants.
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 Netcompany Group's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr.381, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Netcompany Group going out to 2028, and you can see them free on our platform here..
We don't want to rain on the parade too much, but we did also find 2 warning signs for Netcompany Group (1 can't be ignored!) that you need to be mindful 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.