It’s been a good week for Novem SA Group (FRA:NVM) shareholders, as the company has just released its latest annual results and the stock has gained 5.9% to €8.24. It was a decent report, and revenue was 615 million euros, roughly in line with analysts’ estimates before the results announcement. It’s an important time for investors, as they can follow a company’s performance in its report, watch what experts are predicting for next year, and see if there’s been a change in company expectations. ‘company. So we’ve collected the latest post-earnings statutory consensus estimates to see what might be in store for next year.
Check out our latest analysis for Novem Group
Given the latest results, the current consensus of the four analysts of the Novem group expects a turnover of €679.3 million in 2023, which would reflect a notable increase of 11% in sales over the last 12 months. Statutory earnings per share are expected to climb 47% to €1.51. Prior to this earnings report, analysts were expecting revenue of €672.4 million and earnings per share (EPS) of €1.57 in 2023. So it looks like there has been a slight dip in sentiment. general after the recent results – there have been no major changes. to earnings estimates, but analysts have slightly lowered their earnings per share forecast.
It might come as a surprise to learn that the consensus price target remained broadly unchanged at €14.93, with analysts making it clear that the expected drop in earnings is unlikely to have much impact on valuation. The consensus price target is only an average of individual analyst targets, so it might be useful to see how wide the range of the underlying estimates is. Currently, the most bullish analyst values Novem Group at €26.00 per share, while the most bearish analyst values it at €9.50. As you can see, the range of estimates is wide, with the lowest valuation accounting for less than half of the most bullish estimate, suggesting that there are strongly divergent views on how the analysts believe that this company will behave. As a result, it may not be a good idea to make decisions based on the consensus price target, which after all is just an average of this wide range of estimates.
Looking at the big picture, one way to make sense of these forecasts is to see how they compare to both past performance and industry growth estimates. One thing that emerges from these estimates is that Novem Group is expected to grow faster in the future than in the past, with revenues expected to show 11% annualized growth through the end of 2023. If this is achieved, this would be a much better result than the 3.6% annual decline recorded over the past three years. Compare that to analyst estimates for the industry as a whole, which suggest that (in total) industry revenue is expected to grow by 6.7% annually. Not only is Novem Group’s revenue expected to improve, but it appears analysts are also expecting it to grow faster than the industry as a whole.
The most important thing to remember is that analysts have lowered their earnings per share estimates, which shows that there has been a clear drop in sentiment following these results. Fortunately, there have been no major changes in the revenue forecast, with the business still expected to grow faster than the industry as a whole. There was no real change from the consensus price target, suggesting that the company’s intrinsic value has not undergone major changes with the latest estimates.
That said, the company’s long-term earnings trajectory is much more important than next year. We have estimates – from several Novem Group analysts – going out to 2025, and you can see them for free on our platform here.
However, you should always think about the risks. Concrete example, we spotted 2 warning signs for Novem Group you should be aware.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.