Last week saw the latest release of annual results for EQT Holdings Limited (ASX: EQT), an important step in the company’s journey to build a stronger business. Revenue of A $ 101 million was on target, although statutory earnings per share (EPS) fell below expectations at A $ 1.03, missing estimates by 2.5%. Following the result, the analyst updated his profit model, and it would be good to know if he thinks there has been a significant change in the outlook for the company, or if business continues as d ‘habit. So we’ve collected the latest post-profit statutory consensus estimate to see what might be in store for next year.
See our latest analysis for EQT Holdings
Based on the latest results, the most recent consensus for EQT Holdings from a lone analyst is revenue of AU $ 110.0 million in 2022 which, if achieved, would represent a notable increase of 8.8%. of its sales over the past 12 months. Statutory earnings per share are expected to increase 19% to AU $ 1.22. Prior to this earnings report, the analyst was forecasting revenues of AU $ 108.9 million and earnings per share (EPS) of AU $ 1.17 in 2022. So the consensus seems to have become a bit more bullish on the market. earnings potential for EQT Holdings as a result of these results.
There has been no major change to the consensus price target of AU $ 38.00, suggesting that improving earnings per share outlook is not enough to have a positive long-term impact. on the valuation of the action.
One way to get more context on these forecasts is to look at how they stack up against both past performance and the performance of other companies in the same industry. The analyst certainly expects EQT Holdings’ growth to accelerate, with an annualized growth forecast of 8.8% through the end of 2022 ranking favorably against the historic growth of 4.5%. per year for the past five years. Compare that with other companies in the same industry, which are expected to increase their revenues by 4.5% per year. Given the expected acceleration in revenues, it’s pretty clear that EQT Holdings is expected to grow much faster than its industry.
The bottom line
The biggest takeaway for us is the consensual rise in earnings per share, which suggests a clear improvement in sentiment around EQT Holdings’ earnings potential next year. Fortunately, they also reconfirmed their revenue figures, suggesting that sales are moving as expected – and our data suggests that revenue is expected to grow faster than the industry as a whole. There has been no real change to the consensus price target, suggesting that the intrinsic value of the company has not undergone any major changes with the latest estimates.
Continuing this reflection, we believe that the long-term prospects of the company are much more relevant than the results of next year. At least one analyst has provided forecasts through 2024, which can be viewed for free on our platform here.
However, before you get too excited, we’ve found out 1 warning sign for EQT Holdings that you need to be aware of.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative material. Simply Wall St has no position in the mentioned stocks.
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