Results: Skellerup Holdings Limited Exceeded Expectations And The Consensus Has Updated Its Estimates

Simply Wall St
·3 min read

As you might know, Skellerup Holdings Limited (NZSE:SKL) just kicked off its latest full-year results with some very strong numbers. The company beat expectations with revenues of NZ$280m arriving 2.9% ahead of forecasts. Statutory earnings per share (EPS) were NZ$0.21, 5.7% ahead of estimates. The analysts 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 analysts have changed their earnings models, following these results.

See our latest analysis for Skellerup Holdings

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After the latest results, the two analysts covering Skellerup Holdings are now predicting revenues of NZ$303.6m in 2022. If met, this would reflect a solid 8.6% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to expand 14% to NZ$0.24. In the lead-up to this report, the analysts had been modelling revenues of NZ$290.3m and earnings per share (EPS) of NZ$0.22 in 2022. It looks like there's been a modest increase in sentiment following the latest results, withthe analysts becoming a bit more optimistic in their predictions for both revenues and earnings.

With these upgrades, we're not surprised to see that the analysts have lifted their price target 20% to NZ$5.80per share.

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. The analysts are definitely expecting Skellerup Holdings' growth to accelerate, with the forecast 8.6% annualised growth to the end of 2022 ranking favourably alongside historical growth of 5.8% per annum 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 19% per year. It seems obvious that, while the future growth outlook is brighter than the recent past, Skellerup Holdings is expected to grow slower than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Skellerup Holdings following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates sales are expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

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. We have analyst estimates for Skellerup Holdings going out as far as 2024, and you can see them free on our platform here.

You still need to take note of risks, for example - Skellerup Holdings has 1 warning sign we think you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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