A.P. Møller - Mærsk A/S Just Beat EPS By 150%: Here's What Analysts Think Will Happen Next
A.P. Møller - Mærsk A/S (CPH:MAERSK B) just released its quarterly report and things are looking bullish. A.P. Møller - Mærsk delivered a significant beat to revenue and earnings per share (EPS) expectations, hitting US$16b-11% above indicated-andUS$87.00-150% above forecasts- respectively Earnings are an important time for investors, as they can track a company's performance, look at what the 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 the analysts latest (statutory) post-earnings forecasts for next year.
Taking into account the latest results, the most recent consensus for A.P. Møller - Mærsk from 17 analysts is for revenues of US$59.3b in 2026. If met, it would imply a reasonable 5.3% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to soar 107% to US$329. Before this earnings report, the analysts had been forecasting revenues of US$56.3b and earnings per share (EPS) of US$178 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a massive increase in earnings per share in particular.
See our latest analysis for A.P. Møller - Mærsk
It will come as no surprise to learn that the analysts have increased their price target for A.P. Møller - Mærsk 9.9% to kr.15,829on the back of these upgrades. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on A.P. Møller - Mærsk, with the most bullish analyst valuing it at kr.21,932 and the most bearish at kr.9,816 per share. With such a wide range in price targets, analysts are almost certainly betting on widely divergent outcomes in the underlying business. With this in mind, we wouldn't rely too heavily the consensus price target, as it is just an average and analysts clearly have some deeply divergent views on the business.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. One thing stands out from these estimates, which is that A.P. Møller - Mærsk is forecast to grow faster in the future than it has in the past, with revenues expected to display 11% annualised growth until the end of 2026. If achieved, this would be a much better result than the 4.7% annual decline over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 1.4% annually. Not only are A.P. Møller - Mærsk's revenues expected to improve, it seems that the analysts are also expecting it to grow 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 A.P. Møller - Mærsk's earnings potential next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for A.P. Møller - Mærsk going out to 2028, and you can see them free on our platform here..
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 4 warning signs with A.P. Møller - Mærsk (at least 1 which makes us a bit uncomfortable) , and understanding them should be part of your investment process.
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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.