TCM Group A/S (CPH:TCM) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?
Last week, you might have seen that TCM Group A/S (CPH:TCM) released its quarterly result to the market. The early response was not positive, with shares down 3.4% to kr.67.60 in the past week. Revenues were kr.375m, with TCM Group reporting some 5.1% below analyst expectations. 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. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the consensus forecast from TCM Group's twin analysts is for revenues of kr.1.47b in 2026. This reflects a notable 8.1% improvement in revenue compared to the last 12 months. Per-share earnings are expected to rise 5.2% to kr.7.62. Before this earnings report, the analysts had been forecasting revenues of kr.1.49b and earnings per share (EPS) of kr.7.89 in 2026. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
View our latest analysis for TCM Group
It might be a surprise to learn that the consensus price target was broadly unchanged at kr.88.00, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that TCM Group's rate of growth is expected to accelerate meaningfully, with the forecast 17% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 4.0% p.a. 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 4.4% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect TCM Group to grow faster than the wider industry.
The Bottom Line
The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for TCM Group. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at kr.88.00, with the latest estimates not enough to have an impact on their price targets.
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 TCM Group going out as far as 2028, and you can see them free on our platform here.
It is also worth noting that we have found 3 warning signs for TCM Group that you need to take into consideration.
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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.