As you might know, Enzymatica AB (STO:ENZY) recently reported its quarterly numbers. Enzymatica reported in line with analyst predictions, delivering revenues of kr27m and statutory earnings per share of kr0.01, suggesting the business is executing well and in line with its plan. The analyst 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. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
After the latest results, the lone analyst covering Enzymatica are now predicting revenues of kr120.2m in 2020. If met, this would reflect a sizeable 61% improvement in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 85% to kr0.03. Yet prior to the latest earnings, the analyst had been forecasting revenues of kr117.9m and losses of kr0.11 per share in 2020. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analyst upgrading revenues and making a losses per share in particular.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that Enzymatica's rate of growth is expected to accelerate meaningfully, with the forecast 61% revenue growth noticeably faster than its historical growth of 20%p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 29% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Enzymatica is expected to grow much faster than its industry.
The Bottom Line
The most obvious conclusion is that the analyst made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The market did not respond much to the updates, implying that the revisions roughly reflect investor consensus for Enzymatica.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At least one analyst has provided forecasts out to 2022, which can be seen for free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Enzymatica that you should be aware of.
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