Yahoo Finance Analyst Estimates: Here's What Brokers Think Of Coloplast A/S (CPH:COLO B) After Its Second-Quarter Report
Last week, you might have seen that Coloplast A/S (CPH:COLO B) released its second-quarter result to the market. The early response was not positive, with shares down 2.4% to ø1,053 in the past week. It was a workmanlike result, with revenues of ø4.8b coming in 2.6% ahead of expectations, and statutory earnings per share of ø5.00, in line with analyst appraisals. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Coloplast after the latest results.
View our latest analysis for Coloplast
Following last week's earnings report, Coloplast's 18 analysts are forecasting 2020 revenues to be ø19.0b, approximately in line with the last 12 months. Per-share earnings are expected to step up 10% to ø20.88. Before this earnings report, the analysts had been forecasting revenues of ø18.9b and earnings per share (EPS) of ø20.85 in 2020. 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.
There were no changes to revenue or earnings estimates or the price target of ø856, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Coloplast, with the most bullish analyst valuing it at ø1,190 and the most bearish at ø490 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Coloplast's revenue growth will slow down substantially, with revenues next year expected to grow 1.1%, compared to a historical growth rate of 6.5% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 9.6% next year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Coloplast.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply revenues will perform worse 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 said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Coloplast going out to 2024, and you can see them free on our platform here.
It might also be worth considering whether Coloplast's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here.
If you spot an error that warrants correction, please contact the editor at 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. Simply Wall St has no position in the stocks mentioned.
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