Netcompany Group A/S Earnings Missed Analyst Estimates: Here's What Analysts Are Forecasting Now
Shareholders might have noticed that Netcompany Group A/S (CPH:NETC) filed its third-quarter result this time last week. The early response was not positive, with shares down 8.1% to kr.356 in the past week. Revenues were in line with forecasts, at kr.2.3b, although statutory earnings per share came in 12% below what the analysts expected, at kr.3.92 per share. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Netcompany Group after the latest results.
Taking into account the latest results, the most recent consensus for Netcompany Group from eight analysts is for revenues of kr.10.4b in 2027. If met, it would imply a meaningful 10% increase on its revenue over the past 12 months. Per-share earnings are expected to bounce 53% to kr.22.75. In the lead-up to this report, the analysts had been modelling revenues of kr.10.5b and earnings per share (EPS) of kr.23.11 in 2027. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
See our latest analysis for Netcompany Group
It will come as no surprise then, to learn that the consensus price target is largely unchanged at kr.384. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Netcompany Group, with the most bullish analyst valuing it at kr.425 and the most bearish at kr.320 per share. This is a very narrow spread of estimates, implying either that Netcompany Group is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Netcompany Group's revenue growth is expected to slow, with the forecast 7.9% annualised growth rate until the end of 2027 being well below the historical 16% p.a. growth over the last five years. Compare this to the 5 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 7.7% per year. So it's pretty clear that, while Netcompany Group's revenue growth is expected to slow, it's expected to grow roughly in line with the industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. The consensus price target held steady at kr.384, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Netcompany Group 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 1 warning sign for Netcompany Group that you should be aware of.
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