It's been a pretty great week for North Media A/S (CPH:NORTHM) shareholders, with its shares surging 19% to ø59.00 in the week since its latest full-year results. North Media reported ø1.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ø11.00 beat expectations, being 9.8% higher than what analysts expected. Following the result, 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. So we gathered the latest post-earnings forecasts to see what analysts' statutory forecasts suggest is in store for next year.

Check out our latest analysis for North Media

Taking into account the latest results, the one analyst covering North Media provided consensus estimates of ø1.10b revenue in 2020, which would reflect a discernible 2.6% decline on its sales over the past 12 months. Statutory earnings per share are expected to crater 35% to ø7.20 in the same period. Yet prior to the latest earnings, analysts had been forecasting revenues of ø1.09b and earnings per share (EPS) of ø6.56 in 2020. So the consensus seems to have become somewhat more optimistic on North Media's earnings potential following these results.

Further, we can compare these estimates to past performance, and see how North Media forecasts compare to the wider market's forecast performance. We would highlight that sales are expected to reverse, with the forecast 2.6% revenue decline a notable change from historical growth of 2.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same market are forecast to see their revenue grow 2.8% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - analysts also expect North Media to grow slower than the wider market.

The Bottom Line

The biggest takeaway for us from these new estimates is that the consensus upgraded its earnings per share estimates, showing a clear improvement in sentiment around North Media's earnings potential next year. Fortunately, analysts also reconfirmed their revenue estimates, suggesting sales are tracking in line with expectations - although our data does suggest that North Media's revenues are expected to perform worse than the wider market. The analysts we track have not provided a price target, but the market liked the latest results, with the stock up 19% since last week.