Analysts Have Made A Financial Statement On Matas A/S' (CPH:MATAS) First-Quarter Report
Last week saw the newest first-quarter earnings release from Matas A/S (CPH:MATAS), an important milestone in the company's journey to build a stronger business. Matas reported in line with analyst predictions, delivering revenues of kr.2.2b and statutory earnings per share of kr.6.41, suggesting the business is executing well and in line with its plan. The analysts 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 analysts are expecting for next year.
Following the latest results, Matas' three analysts are now forecasting revenues of kr.9.17b in 2027. This would be an okay 3.4% improvement in revenue compared to the last 12 months. Per-share earnings are expected to surge 39% to kr.7.56. Before this earnings report, the analysts had been forecasting revenues of kr.9.18b and earnings per share (EPS) of kr.10.29 in 2027. The analysts seem to have become more bearish following the latest results. While there were no changes to revenue forecasts, there was a pretty serious reduction to EPS estimates.
See our latest analysis for Matas
It might be a surprise to learn that the consensus price target was broadly unchanged at kr.138, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. 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. There are some variant perceptions on Matas, with the most bullish analyst valuing it at kr.155 and the most bearish at kr.120 per share. This is a very narrow spread of estimates, implying either that Matas is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. It's pretty clear that there is an expectation that Matas' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 4.6% growth on an annualised basis. This is compared to a historical growth rate of 19% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 5.9% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Matas.
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. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on Matas. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Matas analysts - going out to 2029, and you can see them free on our platform here.
Don't forget that there may still be risks. For instance, we've identified 3 warning signs for Matas 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.