Yahoo Finanzas Per Aarsleff Holding A/S Just Missed Earnings And Its EPS Looked Sad - But Analysts Have Updated Their Models
Shareholders of Per Aarsleff Holding A/S (CPH:PAAL B) will be pleased this week, given that the stock price is up 12% to ø223 following its latest quarterly results. Results overall were not great, with earnings of ø1.07 per share falling drastically short of analyst expectations. Meanwhile revenues hit ø3.0b and were slightly better than forecasts. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Per Aarsleff Holding
Taking into account the latest results, Per Aarsleff Holding's two analysts currently expect revenues in 2020 to be ø13.5b, approximately in line with the last 12 months. Statutory earnings per share are forecast to decrease 7.0% to ø17.40 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of ø13.3b and earnings per share (EPS) of ø19.71 in 2020. So there's definitely been a decline in sentiment after the latest results, noting the substantial drop in new EPS forecasts.
The consensus price target held steady at ø243, with the analysts seemingly voting that their lower forecast earnings are not expected to lead to a lower stock price in the foreseeable future.
Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast revenue decline of 0.9%, a significant reduction from annual growth of 7.1% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 1.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Per Aarsleff Holding is expected to lag the wider industry.
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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that Per Aarsleff Holding's revenues are expected to perform worse than the wider industry. The consensus price target held steady at ø243, 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 least one analyst has provided forecasts out to 2024, which can be seen for free on our platform here.
However, before you get too enthused, we've discovered 1 warning sign for Per Aarsleff Holding that you should be aware of.
Love or hate this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.
This article by Simply Wall St is general in nature. 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. Thank you for reading.
