Results: Pandora A/S Beat Earnings Expectations And Analysts Now Have New Forecasts
It's been a good week for Pandora A/S (CPH:PNDORA) shareholders, because the company has just released its latest half-year results, and the shares gained 2.8% to kr.819. It looks like a credible result overall - although revenues of kr.14b were in line with what the analysts predicted, Pandora surprised by delivering a statutory profit of kr.24.30 per share, a notable 16% above expectations. 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 gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Following the latest results, Pandora's 18 analysts are now forecasting revenues of kr.33.2b in 2026. This would be a reasonable 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are forecast to decline 15% to kr.62.08 in the same period. Before this earnings report, the analysts had been forecasting revenues of kr.33.1b and earnings per share (EPS) of kr.62.31 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
See our latest analysis for Pandora
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.782. 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 Pandora, with the most bullish analyst valuing it at kr.1,300 and the most bearish at kr.370 per share. 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.
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 pretty clear that there is an expectation that Pandora's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.3% growth on an annualised basis. This is compared to a historical growth rate of 8.2% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.7% annually. Factoring in the forecast slowdown in growth, it seems obvious that Pandora is also expected to grow slower than other industry participants.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Pandora's revenue is expected to perform worse than the wider industry. The consensus price target held steady at kr.782, 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. We have forecasts for Pandora going out to 2028, 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 Pandora (1 shouldn't be ignored) 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.