Aktieselskabet Schouw & Co. (CPH:SCHO) just released its latest third-quarter results and things are looking bullish. It was overall a positive result, with revenues beating expectations by 2.4% to hit kr.11b. Aktieselskabet Schouw also reported a statutory profit of kr.23.46, which was an impressive 27% above what the analysts had 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
After the latest results, the three analysts covering Aktieselskabet Schouw are now predicting revenues of kr.39.4b in 2027. If met, this would reflect a decent 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to leap 62% to kr.69.40. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr.39.4b and earnings per share (EPS) of kr.71.10 in 2027. The analysts seem to have become a little more negative on the business after the latest results, given the minor downgrade to their earnings per share numbers for next year.
Check out our latest analysis for Aktieselskabet Schouw
It might be a surprise to learn that the consensus price target was broadly unchanged at kr.972, 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. There are some variant perceptions on Aktieselskabet Schouw, with the most bullish analyst valuing it at kr.985 and the most bearish at kr.950 per share. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
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. It's clear from the latest estimates that Aktieselskabet Schouw's rate of growth is expected to accelerate meaningfully, with the forecast 8.0% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 5.6% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 4.1% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Aktieselskabet Schouw is expected to grow much faster than its industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Aktieselskabet Schouw. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at kr.972, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Aktieselskabet Schouw. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Aktieselskabet Schouw going out to 2028, and you can see them free on our platform here..
You can also view our analysis of Aktieselskabet Schouw's balance sheet, and whether we think Aktieselskabet Schouw is carrying too much debt, for free on our platform here.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.