It's been a pretty great week for Pandora A/S (CPH:PNDORA) shareholders, with its shares surging 11% to kr.902 in the week since its latest quarterly results. It looks like a credible result overall - although revenues of kr.6.7b were what the analysts expected, Pandora surprised by delivering a (statutory) profit of kr.6.90 per share, an impressive 25% above what was forecast. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the most recent consensus for Pandora from 18 analysts is for revenues of kr.35.2b in 2027. If met, it would imply a satisfactory 7.1% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dive 34% to kr.45.86 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.35.0b and earnings per share (EPS) of kr.46.48 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
View our latest analysis for Pandora
The analysts reconfirmed their price target of kr.858, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Pandora at kr.1,300 per share, while the most bearish prices it at kr.440. As you can see the range of estimates is wide, with the lowest valuation coming in at less than half the most bullish estimate, suggesting there are some strongly diverging views on how analysts think this business will perform. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Pandora's revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 5.6% growth on an annualised basis. This is compared to a historical growth rate of 7.6% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 6.1% annually. Factoring in the forecast slowdown in growth, it looks like Pandora is forecast to grow at about the same rate as the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. The consensus price target held steady at kr.858, 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 forecasts for Pandora going out to 2028, and you can see them free on our platform here.
Plus, you should also learn about the 2 warning signs we've spotted with Pandora .
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