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GN Store Nord A/S Just Beat EPS By 111%: Here's What Analysts Think Will Happen Next
Shareholders of GN Store Nord A/S (CPH:GN) will be pleased this week, given that the stock price is up 16% to kr.124 following its latest quarterly results. Revenues were kr.2.3b, approximately in line with whatthe analysts expected, although statutory earnings per share (EPS) crushed expectations, coming in at kr.2.42, an impressive 111% ahead of estimates. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Following the recent earnings report, the consensus from ten analysts covering GN Store Nord is for revenues of kr.9.96b in 2027. This implies a sizeable 40% decline in revenue compared to the last 12 months. Per-share earnings are expected to leap 37% to kr.3.28. In the lead-up to this report, the analysts had been modelling revenues of kr.9.94b and earnings per share (EPS) of kr.2.96 in 2027. There was no real change to the revenue estimates, but the analysts do seem more bullish on earnings, given the solid gain to earnings per share expectations following these results.
See our latest analysis for GN Store Nord
The consensus price target was unchanged at kr.117, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic GN Store Nord analyst has a price target of kr.135 per share, while the most pessimistic values it at kr.79.15. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One more thing stood out to us about these estimates, and it's the idea that GN Store Nord's decline is expected to accelerate, with revenues forecast to fall at an annualised rate of 33% to the end of 2027. This tops off a historical decline of 1.5% a year over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 3.8% per year. So while a broad number of companies are forecast to grow, unfortunately GN Store Nord is expected to see its revenue affected worse than other companies in the industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around GN Store Nord's earnings potential next year. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GN Store Nord's revenue is expected to 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.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for GN Store Nord going out to 2028, and you can see them free on our platform here..
It is also worth noting that we have found 3 warning signs for GN Store Nord (1 is potentially serious!) that you need to take into consideration.
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