Results: Kid ASA Exceeded Expectations And The Consensus Has Updated Its Estimates
Kid ASA (OB:KID) investors will be delighted, with the company turning in some strong numbers with its latest results. Kid beat earnings, with revenues hitting kr1.0b, ahead of expectations, and statutory earnings per share outperforming analyst reckonings by a solid 11%. 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 Kid after the latest results.
Taking into account the latest results, the consensus forecast from Kid's four analysts is for revenues of kr4.48b in 2027. This reflects an okay 7.0% improvement in revenue compared to the last 12 months. Per-share earnings are expected to shoot up 32% to kr10.27. Yet prior to the latest earnings, the analysts had been anticipated revenues of kr4.48b and earnings per share (EPS) of kr9.95 in 2027. So the consensus seems to have become somewhat more optimistic on Kid's earnings potential following these results.
See our latest analysis for Kid
The analysts have been lifting their price targets on the back of the earnings upgrade, with the consensus price target rising 5.2% to kr148. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Kid analyst has a price target of kr170 per share, while the most pessimistic values it at kr125. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The period to the end of 2027 brings more of the same, according to the analysts, with revenue forecast to display 5.6% growth on an annualised basis. That is in line with its 6.7% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 6.1% per year. So although Kid is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Kid's earnings potential next year. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
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. We have estimates - from multiple Kid analysts - going out to 2028, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Kid that we have uncovered.
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