Globus Maritime Limited (NASDAQ:GLBS) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat both earnings and revenue forecasts, with revenue of US$19m, some 7.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.54, 23% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analyst is forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analyst has changed their earnings models, following these results.
Following the recent earnings report, the consensus from sole analyst covering Globus Maritime is for revenues of US$59.5m in 2022, implying an uneasy 14% decline in sales compared to the last 12 months. Statutory earnings per share are forecast to dive 27% to US$1.37 in the same period. Before this earnings report, the analyst had been forecasting revenues of US$58.2m and earnings per share (EPS) of US$1.27 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analyst becoming a bit more optimistic in their predictions for both revenues and earnings.
Despite these upgrades, the consensus price target fell 28% to US$4.50, perhaps signalling that the uplift in performance is not expected to last.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Globus Maritime's past performance and to peers in the same industry. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 26% by the end of 2022. This indicates a significant reduction from annual growth of 30% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the industry are forecast to see their revenue decline 8.8% annually for the foreseeable future. So it's pretty clear that Globus Maritime's revenues are expected to shrink faster than the wider industry.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Globus Maritime's earnings potential next year. They also upgraded their revenue estimates, with sales apparently performing well, although revenues are expected to lag the wider industry this year. Furthermore, the analyst also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
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.
Before you take the next step you should know about the 3 warning signs for Globus Maritime (2 are significant!) that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
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