VBG Group AB (publ) (STO:VBG B) shares fell 7.3% to kr159 in the week since its latest annual results. Results were roughly in line with estimates, with revenues of kr3.7b and statutory earnings per share of kr11.98. Earnings are an important time for investors, as they can track a company's performance, look at what top analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.

See our latest analysis for VBG Group

Following last week's earnings report, VBG Group's lone analyst are forecasting 2020 revenues to be kr3.69b, approximately in line with the last 12 months. Statutory earnings per share are expected to reduce 3.0% to kr11.62 in the same period. In the lead-up to this report, analysts had been modelling revenues of kr3.69b and earnings per share (EPS) of kr11.54 in 2020. So it's pretty clear that, although analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

Further, we can compare these estimates to past performance, and see how VBG Group forecasts compare to the wider market's forecast performance. We would highlight that sales are expected to reverse, with the forecast 1.0% revenue decline a notable change from historical growth of 27% over the last five years. Compare this with our data, which suggests that other companies in the same market are, in aggregate, expected to see their revenue grow 1.4% next year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect VBG Group to grow slower than the wider market.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with analysts reconfirming that earnings per share are expected to continue performing in line with their prior expectations. On the plus side, there were no major changes to revenue estimates; although analyst forecasts imply revenues will perform worse than the wider market. Analysts have not currently provided a price target, but the market responded negatively to the update with the share price falling -7.3% over the past week.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have analyst estimates for VBG Group going out as far as 2022, and you can see them free on our platform here.

It might also be worth considering whether VBG Group'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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