NKT A/S (CPH:NKT) Interim Results: Here's What Analysts Are Forecasting For This Year
It's been a good week for NKT A/S (CPH:NKT) shareholders, because the company has just released its latest half-year results, and the shares gained 4.7% to kr.967. NKT reported €1.8b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of €0.93 beat expectations, being 3.9% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. 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, NKT's ten analysts are now forecasting revenues of €3.67b in 2026. This would be a reasonable 2.1% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to fall 20% to €4.03 in the same period. In the lead-up to this report, the analysts had been modelling revenues of €3.74b and earnings per share (EPS) of €3.86 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.
Check out our latest analysis for NKT
The consensus price target was unchanged at kr.929, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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 NKT analyst has a price target of kr.1,251 per share, while the most pessimistic values it at kr.495. We would probably assign less value to the analyst forecasts in this situation, because such a wide range of estimates could imply that the future of this business is difficult to value accurately. As a result it might not be a great idea to make decisions based on the consensus price target, which is after all just an average of this wide range of estimates.
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. We would highlight that NKT's revenue growth is expected to slow, with the forecast 4.3% annualised growth rate until the end of 2026 being well below the historical 17% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.9% annually. Factoring in the forecast slowdown in growth, it seems obvious that NKT is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around NKT's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at kr.929, 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 estimates - from multiple NKT analysts - going out to 2028, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for NKT you should know about.
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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.