There’s been a notable change in appetite for CM.com N.V. (AMS:CMCOM) shares in the week since its interim report, with the stock down 16% to €11.76. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there’s been a strong change in the company’s prospects, or if it’s business as usual. With this in mind, we’ve gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for CM.com
Taking into account the latest results, the current consensus from CM.com’s twin analysts is for revenues of €307.9m in 2022, which would reflect a meaningful 18% increase on its sales over the past 12 months. Losses are expected to be contained, narrowing 19% from last year to €0.96. Yet prior to the latest earnings, the analysts had been forecasting revenues of €317.8m and losses of €0.11 per share in 2022. While this year’s revenue estimates dropped there was also a regrettable increase in loss per share expectations, suggesting the consensus has a bit of a mixed view on the stock.
The consensus price target fell 6.3% to €15.00, with the analysts clearly concerned about the company following the weaker revenue and earnings outlook.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of CM.com’shistorical trends, as the 39% annualised revenue growth to the end of 2022 is roughly in line with the 40% annual revenue growth over the past three years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 9.5% per year. So although CM.com is expected to maintain its revenue growth rate, it’s definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at CM.com. Regrettably, they also downgraded their revenue estimates, but the latest forecasts still imply the business will grow faster than the wider industry. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.
With that in mind, we wouldn’t be too quick to come to a conclusion on CM.com. Long-term earnings power is much more important than next year’s profits. We have analyst estimates for CM.com 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 – CM.com has 2 warning signs we think you should be aware of.
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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.