Lumi Education Group AS (OB:LUMI) Just Released Its Half-Yearly Earnings: Here's What Analysts Think
Lumi Education Group AS (OB:LUMI) shareholders are probably feeling a little disappointed, since its shares fell 3.1% to kr18.60 in the week after its latest half-yearly results. Lumi Education Group reported kr277m in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of kr0.37 beat expectations, being 2.8% 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. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the current consensus from Lumi Education Group's three analysts is for revenues of kr566.3m in 2026. This would reflect a reasonable 3.4% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to accumulate 2.5% to kr0.77. Before this earnings report, the analysts had been forecasting revenues of kr591.3m and earnings per share (EPS) of kr1.00 in 2026. From this we can that sentiment has definitely become more bearish after the latest results, leading to lower revenue forecasts and a pretty serious reduction to earnings per share estimates.
View our latest analysis for Lumi Education Group
Despite the cuts to forecast earnings, there was no real change to the kr21.00 price target, showing that the analysts don't think the changes have a meaningful impact on its intrinsic value. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Lumi Education Group analyst has a price target of kr20.00 per share, while the most pessimistic values it at kr17.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business 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. One thing stands out from these estimates, which is that Lumi Education Group is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.0% annualised growth until the end of 2026. If achieved, this would be a much better result than the 1.7% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue grow 5.0% per year. So it looks like Lumi Education Group is expected to grow faster than its competitors, at least for a while.
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. They also downgraded Lumi Education Group's revenue estimates, but industry data suggests that it is expected to grow faster 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 Lumi Education Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Lumi Education Group analysts - going out to 2028, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 1 warning sign with Lumi Education Group , and understanding it should be part of your investment process.
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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.